ELKHART, Ind., Sept. 14, 2012 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) (the "Company") announced today the acquisition of the business and certain assets of Creative Wood Designs, Inc. ("Creative"), a manufacturer of hardwood furniture including interior hardwood tables, chairs, dinettes, trim, fascia, mouldings, and other miscellaneous products for the recreational vehicle ("RV") industry. Creative, based in Ligonier, Indiana and with 2012 annual revenues expected to be approximately $18 million, marks Patrick's sixth acquisition since June 2011 and the third this year.
"The acquisition of Creative Wood Designs, along with the other businesses we have acquired over the past 15 months, will allow Patrick to further expand its presence in the RV market and increase our product offerings, market share, and per unit content," stated Todd Cleveland, President and Chief Executive Officer. "In addition, we are excited to leverage our operational talent and expertise, particularly as it relates to our own custom hardwood manufacturing knowledge and processes, with those of Creative. Creative is a major supplier in the RV hardwood furniture market and will be an asset to our organization as we continue to focus on providing new and innovative products to our customer base."
The business will continue to operate on a stand-alone basis under the Creative Wood Designs brand name in its existing 250,000 square foot facility in Ligonier. The purchase price for the assets was approximately $5.7 million, including a contingent payment based on future performance, and was funded under the Company's revolving credit facility. The acquisition is expected to be immediately accretive to earnings per share.
"Creative is a natural fit with Patrick's existing RV and commercial businesses as it brings many competitive advantages to our Company, including high-quality custom-built product lines, strategic sales and supplier relationships, exceptional customer service, industry experience, and breadth and depth of products," said Mr. Cleveland. "The strength and dedication of Creative's management team, with more than 25 years of industry and operational experience, and its long-standing trusted customer relationships will be an asset to our organization as we continue to capitalize on our core competencies and execute on our strategic initiatives."
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