Indiana RV Company Adds Wisconsin Business
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowElkhart-based Lippert Components Inc. has announced the acquisition of a Wisconsin-based company's recreational vehicle business. The deal for Actuant Corp. (NYSE: ATU) is valued at nearly $36 million. June 16, 2014
News Release
ELKHART, Ind. – Drew Industries Incorporated, 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, 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.”
About Drew Industries
From 34 factories located throughout the United States, Drew Industries, through its wholly-owned subsidiary, Lippert Components, supplies a broad array 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 campers; truck caps; modular housing; and factory-built mobile office units. Drew's products include steel chassis; vinyl and aluminum windows; slide-out mechanisms and solutions; axles and suspension solutions; furniture and mattresses; thermoformed bath, kitchen and other products; manual, electric and hydraulic stabilizer and leveling systems; chassis components; entry, luggage, patio and ramp doors; electric and manual entry steps; awnings and slide toppers; electronic components; and other accessories. Additional information about Drew and its products can be found at www.drewindustries.com .
Source: Drew Industries Inc.
June 16, 2014
News Release
MILWAUKEE, Wisc. – Actuant Corporation (NYSE: ATU) announced today that it has completed the sale of its Recreational Vehicle (RV) business to Drew Industries (NYSE:DW). Actuant’s RV business, included within the Engineered Solutions segment, designs and manufactures motorhome leveling and room slide-out systems, and retractable steps, predominately under the PowerGear and Kwikee brand names. The business has annual revenues of approximately $30 million. Total cash proceeds approximated $35 million and the Company expects to record an aggregate net gain on the divestiture. Additional details will be provided on the Company’s third quarter earnings call scheduled for June 18, 2014.
Mark Goldstein, Actuant Chief Executive Officer commented, “We are pleased to have completed the divestiture of the RV business to a strategic buyer whose complementary product offerings provide a clear fit for the business. The sale is part of our ongoing portfolio management efforts to proactively focus Actuant on our four macro growth markets of Energy, Infrastructure, Food/Farm Productivity and Natural Resources/Sustainability, where we can build meaningful positions and support our strategic growth initiatives.”
About Actuant
Actuant Corporation is a diversified industrial company serving customers from operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic tools and solutions; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.
Source: Actuant Corp.