Patrick Industries and LCI Industries, doing business as Lippert, have agreed to combine the businesses in a $3.52 billion all-stock merger of two of the two makers of components for RV, marine, automotive, and commercial vehicles.
Under the agreement, which the Boards of Directors of both companies unanimously approved, LCI shareholders will receive 1.244 shares of Patrick common stock for each share of LCI common stock they own.
Following completion of the transaction, Patrick shareholders will own roughly 52 percent of the combined company, and LCI shareholders will own approximately 48 percent.
Patrick’s brands include Rockford Fosgate, Sportech, SeaDek, Alpha Systems, Elkhart Brass, BetterWay Products, Transhield, Adorn, RecPro, Williamsburg, AIA Countertops & Front Range Stone, and Alpha Systems. Lippert’s brands include Furrion, SureShade and Curt.
The companies said in a media release, “This strategic combination brings together two companies with complementary product portfolios and longstanding partnerships with customers and stakeholders across North America and Europe. Together, Patrick and Lippert will create a more dynamic, innovative, solutions-oriented platform serving a diverse range of OEMs and consumers in the outdoor enthusiast, housing, transportation and other markets, through a broader portfolio of brands, more efficient operations, enhanced R&D investment and commercialization capabilities. By bringing together Patrick’s integrated design-to-delivery capabilities and Lippert’s expertise in highly engineered, structural OEM and aftermarket components, the combined organization will deliver differentiated, cost-effective competitive solutions aimed at improving affordability, strengthening value chain alignment and delivering outstanding customer service while supporting long-term organic and strategic growth and disciplined capital allocation.”
Upon closing, Patrick Industries CEO Andy Nemeth will serve as CEO of the combined companies.
The Board of Directors of the combined companies will consist of 12 directors, with six designated by Patrick and six designated by Lippert. Patrick Director Todd Cleveland will serve as Chair of the Board, and Lippert’s Interim CEO and Director Johnny Sirpilla will serve as vice chair of the Board.
The combined company will use a collaborative approach to identify executive management and other leaders for key business roles.
“Today marks the beginning of an exciting new chapter in the evolution of our two companies as we continue on our journey to positively impact and deliver value for our customers, our team members, shareholders, and the communities we serve,” said Andy Nemeth, CEO of Patrick Industries. “We have long respected the Lippert team and their impressive, innovative capabilities across the solutions they deliver and are thrilled to reach this milestone. We have two highly successful, well-established organizations with long track records of strategic and organic growth, innovation, and customer service, supported by incredible talent across each enterprise, deep expertise, and a shared commitment to excellence. Together, we will create a premier partnership-oriented platform for the global outdoor enthusiast ecosystem, housing and transportation markets that is more resilient and better positioned to serve all of our customers – from OEMs to the end consumer. We remain dedicated to our culture and values focused on humility and trust, the reinvestment in our vision, business, and strategy with the goal of delivering an even brighter future for the stakeholders we serve.”
Johnny Sirpilla, interim chief executive officer of Lippert, added, “This combination represents a defining moment for Lippert. Our shareholders will benefit from ownership in a more diversified company with the financial and operational strength to grow revenues and deliver outstanding value to shareholders and other stakeholders. As two complementary businesses with strong legacies deeply rooted in Elkhart and our other local communities, we understand the potential and positive impact this combination can deliver. Together, we can offer a broader, more innovative, competitive, and affordable portfolio of products and product solutions, as we work with our partners and customers in key segments to drive greater value for end consumers. We will also continue to invest in our growth and combined capabilities, creating new opportunities for team members and charting an exciting new future for the combined company.”
Following the closing of the transaction, the combined company will be headquartered in Elkhart, IN.
The transaction is expected to close in the first half of 2027, subject to approval by shareholders of both companies, the receipt of required regulatory approvals and the satisfaction of other customary closing conditions.
J.P. Morgan Securities LLC serves as lead financial advisor, and Baird serves as co-lead financial advisor to Patrick Industries. McDermott Will & Schulte LLP serves as legal advisor. Perella Weinberg Partners LP serves as financial advisor to LCI Industries and Kirkland & Ellis, LLP serves as legal advisor. FGS Global serves as a strategic communications advisor to LCI Industries.
Image courtesy Patrick/Lippert Industries
