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March 5, 2012 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) (the "Company") announced today that it has completed the acquisition of the business and certain assets of Decor Mfg., LLC ("Decor"), a premier laminating operation located in
Tualatin, Oregon, for a purchase price of approximately
$4.4 million. Decor primarily produces laminated and wrapped products for the
Oregon recreational vehicle ("RV") market.
Oregon market is significant in terms of RV market potential as it relates to overall Northwestern United States RV production levels, and we estimate it to be the second largest RV producing geographic sector outside of the Midwest. We are excited about partnering with the extremely talented management team at Decor, who have built long-standing trusted relationships with customers in the Northwest. They will be an asset to the Company as we look to continue to bring value to our customers in terms of price, flexibility, proximity, innovation, quality, and an overall ease of doing business," stated
Todd Cleveland, President and Chief Executive Officer. "In addition to providing opportunities for the Company to increase its market share and per unit content, we believe the acquisition will afford the Company the immediate potential to establish a significant RV presence in the Northwest."
The acquisition was funded through borrowings under the Company's revolving credit facility and the issuance of 100,000 shares of Patrick common stock. The Company estimates Decor's annualized 2012 revenues to be approximately
$17 million. The business will continue to operate on a stand-alone basis under the Decor Mfg. name in its existing manufacturing facility in Tualatin. Patrick currently operates a high-pressure laminate manufacturing cell for the industrial market and a distribution center for the RV and manufactured housing markets in its existing nearby
Woodburn, Oregon facility.
"Decor is a natural fit with Patrick's existing RV and commercial businesses. Our relationships with existing key customers of Decor in combination with those firmly established by Decor's senior management team over the years will serve to further strengthen our commitment to the industry and our customer base. Additionally, the acquisition fits within the framework of our strategic plan, provides a new avenue to provide new products to our customer base, and is expected to be immediately accretive to earnings per share," said Mr. Cleveland.