Lippert Acquires Lexington Business
Elkhart-based Lippert Components Inc. has acquired the marine and recreational vehicle seating business of Lexington LLC, also based in Elkhart. Lippert says the company will add Lexington's employees to its portfolio as part of the $40 million deal.
Lexington manufactures seating products for a variety of industries, including medical and office furniture in addition to marine and RV. Lippert, a subsidiary of LCI Industries (NYSE: LCII), says sales of the acquired business at the end of the year are expected to be approximately $60 million.
"Our combined marine furniture team is talented and innovative, as well as experienced in managing growth," said Jason Lippert, chief executive officer of LCI. "Lexington is our largest acquisition in the past 20 years, and is representative of our strategy of quickly assembling a portfolio of companies and products that will help us become a major contributor to marine component designs and solutions. We expect to leverage our purchasing, sales, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to LCI's earnings."
As a result of the deal, Lexington President Jeff Wysong will continue with LCI to lead the acquired business. He calls LCI a "great strategic fit" for the company.