Drew Industries Inc., parent of towable RV chassis and slideout systems supplier Lippert Components, announced today (March 22) it intends to buy Zieman Manufacturing Co., a towable RV chassis supplier in Whittier, Calif.
Drew, which earned net income of $19.4 million on sales of $353 million last year, plans to pay cash for Zieman, which operates eight plants along the West Coast and which had $44 million in sales last year.
Founded in 1946, Zieman’s RV chassis are primarily used for travel trailers and fifth-wheels.
Executives at Drew, based in White Plains, N.Y., believe the Zieman acquisition will immediately add to Drew’s earnings.
The transaction is expected to be finalized by mid-April, pending the completion of due diligence and the signing of definitive agreements.
The owners of Zieman will join Drew and become a part of Goshen, Ind.-based Lippert Components.
“Zieman’s operations are a natural extension of our RV and manufactured home chassis business on the West Coast,” said Jason Lippert, president and CEO of Lippert Components. “Further, this acquisition brings us manufacturing capabilities for specialty trailers for boats, snowmobiles and other recreational products, markets we do not presently serve.
“Over time, we expect the addition of Zieman to afford us the opportunity to expand this business to Lippert’s factories in other regions of the country,” Lippert added.
Towable RV and manufactured home chassis now account for 54% of Zieman’s sales revenue, with specialty trailers for boats, snowmobiles and other recreational products comprising the other 46%.
“This planned acquisition is another example of Drew’s ability to use strong cash flow and balance-sheet position to expand within our core RV and manufactured home industries,” said Leigh Abrams, president and CEO of Drew. “We anticipate that the management team at Lippert Components will work closely with Zieman’s management to realize substantial savings and further growth opportunities as we bring together these two seasoned and profitable businesses.”