LCI Industries (LCI), announced that its wholly-owned subsidiary Lippert Components Inc. has reached an agreement in principle to acquire Sessa Klein S.p.A., a Varese, Italy-based manufacturer of highly engineered side window systems for both high speed and commuter trains. According to a news release, Sessa Klein’s sales for 2016 were approximately $11 million.
Closing of the transaction is anticipated to take place within 30 days. The purchase price is expected to be approximately $8.5 million, which would be paid at closing from available cash, plus contingent consideration based on future sales.
“Sessa Klein has an excellent management team, and a great reputation in the international rolling stock industry for the sophisticated engineering and design of their window products,” said LCI President Scott Mereness. “In 2016, we acquired Florence, Italy-based Project 2000 S.r.L., a manufacturer of motorized entry steps, bed lifts and RV accessories, as a foundation for LCI in the European RV market. We believe the addition of Sessa Klein’s products and diversified customer base opens a door into a new adjacent market for LCI.
“We are enthusiastic about growing market share in their core train markets in Europe as well as the United States,” Mereness added. “Additionally, we believe this transaction accelerates the opportunities to expand LCI’s product offerings for the European RV market, particularly for caravan windows. We look forward to the Sessa Klein management team continuing to serve their existing customers after the transaction is completed, as well as working closely with LCI’s management team to find new opportunities.”