Drew Industries Makes Acquisitions

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A subsidiary of Elkhart-based Drew Industries Inc. has acquired two companies. The company says the deals for Michigan-based Innovative Design Solutions Inc. and Star Design LLC in Elkhart are worth a total of about $48 million.

February 27, 2014

News Release

Elkhart, Ind. -- 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 reached an agreement in principle to acquire certain assets and the business of Star Design, LLC., an Elkhart, Indiana-based manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries.

Closing of the transaction, anticipated to take place within 30 days, is subject to completion of due diligence, agreement on final terms, the execution of definitive transaction documents and satisfaction of customary closing conditions. The purchase price is expected to be approximately $12 million, which would be paid at closing from available cash and borrowings under the Company's $75 million line of credit.

"Star Design has an excellent management team, and a great reputation in the markets they operate," said Drew's President Scott Mereness. "And we look forward to the Star Design management, including Kevin Gipson, President of Star Design, continuing to serve existing customers after the transaction is completed. In 2013 we relocated our RV thermoforming plastic production from Texas to an Elkhart, Indiana location large enough to accommodate expected growth. We have continued to grow our RV and specialty markets plastics business since then, and we are excited to boost further growth with the acquisition of Star Design."

Lippert Components believes the additional product lines and diversified customer base will accelerate Lippert Components' expansion into specialty markets. Star Design has annual sales of approximately $10 million.

Star Design Chairman Kelly Rose, who will not remain with the business, believes he is leaving the business and operations team in good hands. "Star Design has experienced strong growth in the past few years, and we are confident Lippert Components will continue to strategically drive the business forward," said Kelly Rose. "We also believe Lippert Components will benefit by adding our experienced team, and also provide the Star Design team with great opportunities for professional growth and advancement."

About Drew Industries

From 32 factories located throughout the United States, Drew Industries, through its wholly-owned subsidiary, Lippert Components™, supplies a full line of components for the leading manufacturers of recreational vehicles and manufactured homes. In addition, Drew manufactures components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; truck caps; modular housing; and factory-built mobile office units. Drew's products include steel chassis; vinyl and aluminum windows and screens; slide-out mechanisms and solutions; axles and suspension solutions; furniture and mattresses; thermoformed bath, kitchen and other products; manual, electric and hydraulic stabilizer and lifting systems; chassis components; entry, baggage, patio and ramp doors; entry steps; awnings; electronics; aluminum extrusions; and other accessories. Additional information about Drew and its products can be found at www.drewindustries.com.

Source: Drew Industries Inc.

February 27, 2014

News Release

Elkhart, Ind. -- 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 Innovative Design Solutions, Inc. (IDS), a Troy, Michigan-based designer, developer and manufacturer of electronic systems encompassing a wide variety of RV applications. IDS also manufactures electronic systems for automotive, medical and industrial applications.

"We are excited to have IDS and its employees join the Lippert Components family," said Drew's Chief Executive Officer Jason Lippert. "The talented team of engineers we have added from IDS are leaders in electronic systems for RVs and other industries. In the past several years, the IDS team, alongside the Lippert Components team, has been responsible for developing unique electronic products for the RV industry. IDS will now have an even sharper focus on developing innovative products for our RV customers, as well as customers in adjacent industries."

IDS had annual sales of approximately $19 million in 2013, of which $13 million were to Lippert Components. Lippert Components believes the additional product lines and diversified customer base will accelerate Lippert Components' expansion into adjacent industries. The purchase price was $36.0 million, of which $34.2 million was paid at closing from available cash and borrowings under the Company's $75 million line of credit, with the balance to be paid out annually over the subsequent three years, plus contingent consideration based on future sales. Drew expects the acquisition to be immediately accretive to earnings.

"The products IDS manufactures are central to the control of several RV components, including electronic leveling systems, jacks, lights, slide-out mechanisms, awnings, tire pressure monitoring systems, among others," continued Jason Lippert. "Many of IDS's RV products are already included in components we sell, including a Wi-Fi enabled, touch-screen, Android-based device that enables RV owners to control several RV functions. Having multiple functions connected through one control device should help improve our customers' manufacturing efficiencies, as well as provide a strong selling point for retail customers. Becoming the manufacturer of these products should also allow us to develop and deliver these products to our customers more efficiently."

Rob Ford, former owner of IDS, has entered into an employment agreement with Lippert Components and will continue to manage the business. Rob Ford expects to see the business flourish, "We are pleased that the business we have worked so hard to grow will continue to be managed by our outstanding team. Electronics have become a larger part of day-to-day life, and our innovative team has continued to identify opportunities to bring ideas and improvements to the industries we supply."

Rob Ford concluded, "This acquisition provides a unique and exciting opportunity to bring modern electronics to RV manufacturers and the RV aftermarket, which will result in a better RV user experience. Combining Lippert Components' and IDS's experience and technologies should open up exciting opportunities for safety, control and interface electronic products. With the strategic, financial, sales and marketing support that Lippert Components provides, we are confident that the IDS business will continue to grow."

About Drew Industries

From 32 factories located throughout the United States, Drew Industries, through its wholly-owned subsidiary, Lippert Components™, supplies a full line of components for the leading manufacturers of recreational vehicles and manufactured homes. In addition, Drew manufactures components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; truck caps; modular housing; and factory-built mobile office units. Drew's products include steel chassis; vinyl and aluminum windows and screens; slide-out mechanisms and solutions; axles and suspension solutions; furniture and mattresses; thermoformed bath, kitchen and other products; manual, electric and hydraulic stabilizer and lifting systems; chassis components; entry, baggage, patio and ramp doors; entry steps; awnings; electronics; aluminum extrusions; and other accessories. Addi