Lippert Components Inc., Goshen, Ind., has acquired Rialto, Calif.- based SteelCo Inc. for $4.5 million in cash, which includes settlement of a lawsuit filed in 2002.
According to a press release, the purchase was funded through White Plains, N.Y.-based Drew Industries Inc., parent to recreational vehicle and manufactured housing suppliers Lippert and Kinro, Arlington, Texas.
SteelCo, which manufactures chassis and component parts for the RV and MH industries, had annual sales of approximately $8 million in 2005.
Drew said the acquisition would “terminate” a lawsuit initiated by SteelCo against Lippert in 2002, noting, “consideration for the termination of this litigation, which is less than the $500,000 previously accrued by Drew, was included in the negotiated purchase price.”
Lippert will occupy SteelCo’s factory for about two months while operations are transferred to its West Coast factories. Lippert did not retain SteelCo’s executive management, but hired many of the company’s employees.