Drew Industries Inc. announced Tuesday evening (May 4) it had completed the acquisition of Zieman Manufacturing Co., a producer of specialty trailers and supplier of towable RV chassis and parts with 10 factories in the Western U.S.
Drew, parent of RV industry suppliers Lippert Components and Kinro, will pay $20.5 million in cash and assume $5.1 million of Zieman’s debt. Drew, a New York Stock Exchange-listed company, increased its line of credit to $50 million, from $30 million, to pay for Zieman of Whittier, Calif.
Zieman, which had $44 million in sales in 2003, now is a part of Goshen, Ind.-based Lippert Components, also a supplier of towable RV chassis and slideout systems.
Zieman’s former owners now are executives at Lippert Components.
“Jason Lippert, president and CEO of Lippert Components, and the rest of his management team is already in the process of integrating Zieman to better serve customers in both its industry segments,” Drew President and CEO Leigh Abrams said. “The result is yet another step in our pursuit of becoming the leading supplier to the RV and manufactured housing markets.
“In addition, Lippert will attempt to market the highly respected Zieman brand of specialty trailers beyond the West Coast.”
Besides building towable RV chassis and specialty trailers, Zieman also makes trailers for hauling boats, personal watercraft, snowmobiles and various types of equipment.
Zieman’s sales revenue increased 25% during the first quarter of this year and its profits also were up during that period. Zieman will immediately add to Drew’s earnings, Abrams said.
“We look forward to building on the platform that Zieman provides by adding our management and marketing expertise to their complementary line of products, creating another growth engine for Drew,” he said.