Elkhart-based Patrick Industries Inc. (Nasdaq: PATK) has wrapped up its acquisition of a Michigan recreational vehicle components manufacturer. The deal for North American Forest Products Inc. is estimated to be valued at $85 million.
North American makes laminated panels, moulding products and other components for the RV industry. Patrick estimates the combined revenues over the last year at $1 billion.
Patrick Chief Executive Officer Todd Cleveland says "North American’s tremendous expertise in the softwoods market, which represents approximately half of its revenue base, provides us with a ‘best of both worlds’ opportunity via the entry into new product lines that are used extensively in the RV industry. North American also sells these products into the MH and industrial markets, which we believe have upside potential." He adds the deal, which is one of the company’s largest-ever, will allow Patrick to expand into new markets.
Most of the North American senior management team will stay on to run the business, which will be operated as a stand-alone branch of Patrick Industries. North American founder and President Bob Wiley says he will move on and "begin the next chapter of my life following the union with Patrick." He started the company more than 25 years ago.