Patrick Industries Completes $20.3M Acquisition of Middlebury Hardwood Products, Inc.
Patrick Industries (NASDAQ: PATK) announced today the acquisition of the business and certain assets of Middlebury, Indiana-based Middlebury Hardwood Products, Inc. ("Middlebury Hardwoods"), a major manufacturer and distributor of hardwood cabinet doors, components, fascia and other hardwood products for the recreational vehicle ("RV"), manufactured housing ("MH"), and residential kitchen cabinet industries. Middlebury Hardwoods, with projected 2012 annual revenues of approximately $33 million, marks the Company's fourth acquisition this year and seventh since June 2011.
"The addition of Middlebury Hardwoods will help us in becoming an industry leader in the cabinet door market in the industries that we serve," said Todd Cleveland, President and Chief Executive Officer of Patrick. "As we have done in the past, we will continue to allow the entrepreneurial spirit of this operation to thrive while supporting the business with the financial and operational foundation that will enable it to align with our Company mission of bringing the highest quality products, service and value to our customers."
Chuck Lamb, longtime Chief Executive Officer, Principal, and Founder of Middlebury Hardwoods said, "After leading and working with the exceptional team at Middlebury Hardwoods for more than 27 years, I am both excited and comforted that we have been able to team up with an organization like Patrick whose core values, competencies, relationships, and customer first approach mirror those that we have worked so hard to establish. Patrick is a natural fit for our operation, and the additional manufacturing expertise and financial resources that they bring can help propel Middlebury Hardwoods to the next level."
The net purchase price of approximately $20.3 million was funded under the Company's new $80 million revolving secured senior credit facility and includes the acquisition of accounts receivable, inventory, prepaid expenses, machinery, equipment and vehicles, and land and buildings. The business will continue to operate on a stand-alone basis under the Middlebury Hardwood Products brand name in its existing 134,000 square foot facility. The Company expects the acquisition to be immediately accretive to earnings per share.
"We are honored to have the opportunity to partner with Chuck and his team, and humbled by the highly respected legacy that he has created in the industry," said Mr. Cleveland. "Additionally, we are excited about bringing our two companies together to maximize resources, synergies and buying power, strengthen customer relationships through value added innovation and intuitive designs, bring a broad spectrum of products and price points to our customer base, and improve overall profitability through the continued execution of our strategic plan."
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