Drew Industries Inc. today (Jan. 8) announced its wholly owned subsidiary, Lippert Components Inc., acquired two affiliated companies, Trailair Inc. and Equa-Flex Inc., which manufacture several patented products, including suspension systems used primarily for towable recreational vehicles.
The two acquired companies reported combined sales in excess of $3 million, according to White Plains, N.Y.-based Drew.
The purchase price was $5.5 million, of which $3.3 million was paid at closing and the balance will be paid over the next five years. Drew said the price could increase to a maximum of $8.1 million if Lippert achieves certain sales targets during that five-year period.
“Trailair and Equa-Flex recently introduced several new products, and Lippert Components is already reporting a substantial number of orders for these new products,” said Jason Lippert, president and CEO of Goshen, Ind.-based Lippert Components. “These products were very favorably accepted by RV manufacturers when we displayed the products at the Louisville RV industry trade show in late November 2006.”
Drew reported that some of Trailair’s and Equa-Flex’s management personnel will be employed by Lippert, and all manufacturing operations for the acquired products will be integrated into Lippert’s existing factories.
Lippert will not lease or acquire any facilities in connection with these acquisitions.