ELKHART, Ind., June 16, 2014 /PRNewswire/ -- Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and manufactured homes, today announced that its wholly-owned subsidiary, Lippert Components, Inc., has acquired the RV business of Actuant Corporation (NYSE: ATU), which manufactures leveling systems, slideout mechanisms and steps, primarily for motorhome RVs, under the Power Gear® and Kwikee® brands. Sales of the acquired business for the twelve months ended May 31, 2014 were approximately $28 million, consisting of sales to OEMs, as well as significant aftermarket sales.
The purchase price was $35.5 million, which was paid at closing from available cash, as well as from borrowings under the Company's $75 million line of credit with JPMorgan Chase and Wells Fargo. After funding this acquisition, the Company remains well-positioned to take advantage of other investment opportunities.
"We are thrilled to have the Power Gear and Kwikee business and its employees join the Lippert Components family," said Drew's Chief Executive Officer Jason Lippert. "The RV industry has been growing over the past few years, which has increased the necessity for talented people in engineering, sales, manufacturing and customer service. This talented team will be a strong addition to our existing team, and will help us continue to grow as we move forward."
"In addition, Power Gear and Kwikee have excellent products, strong customer relationships, and a portfolio of over 80 patents and patent applications. The addition of these patents to our portfolio expands our product development potential, which we believe will lead to better overall products for the RV industry," added Lippert. "We expect to leverage our extensive manufacturing, purchasing, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to Drew's earnings."