Patrick Industries Inc. announced today (Sept. 1) that it has completed the acquisition of the business and certain assets of Edwardsburg, Mich.-based North American Forest Products Inc. and its wholly owned subsidiary, North American Moulding LLC (collectively, “North American”).

The Elkhart, Ind.-based supplier reported in a news release that North American is a major manufacturer and distributor, primarily for the recreational vehicle industry, of profile wraps, custom mouldings, laminated panels and moulding products which together represent one of Patrick’s existing core product lines. North American is also a major manufacturer and supplier of raw and processed softwood products, including lumber, panels, trusses, bow trusses, and industrial packaging materials, primarily used in the RV and manufactured housing industries.

The company estimates North American’s trailing 12-month revenues through July 2015 at approximately $165 million, which when combined with Patrick’s consolidated revenues for the same time period approximates $1 billion.

The total cash consideration paid for North American was approximately $85 million, and Patrick expects the acquisition to be immediately accretive to 2015 net income per share, with one-time transaction specific pretax charges incurred of approximately $0.3 million or 1 cent per diluted share.

“North American’s tremendous expertise in the softwoods market, which represents approximately half of its revenue base, provides us with a ‘best of both worlds’ opportunity via the entry into new product lines that are used extensively in the RV industry. North American also sells these products into the MH and industrial markets, which we believe have upside potential,” said Todd Cleveland, president and CEO of Patrick. “Additionally, North American is recognized as a high-quality supplier of a wide array of laminated panels and moulding products for OEMs in the RV, MH, and industrial markets, and thus is a natural fit with our core lamination operations. North American’s strong market position, which has resulted from its excellent reputation for providing exceptional service to its customer base, will allow us to expand our array of products and services through existing sales channels and into new markets, capitalize on internal cost saving synergies which will ultimately provide increased value to our customer base, and increase our market share and per unit content in the RV and MH industries.”

“The acquisition of North American marks one of the largest acquisitions in our history and represents a seamless fit with our other operating entities, manufacturing expertise, and customer relationships,” he continued. “We are looking forward to working with the North American management team, who will continue to run the business, and look to maximize synergy opportunities between the two organizations through an effective transition plan, continuing the momentum we have in the marketplace. Consistent with previous acquisitions, we will support North American with a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the entrepreneurial spirit that has been so important to its success.”

Bob Wiley, president and founder of North American, noted, “After more than 25 years in business, our exceptional management team is excited and energized to join the Patrick organization whose core values, competencies, relationships and strong focus on customer service mirror those we have worked hard to build and maintain on a consistent basis. While I plan to begin the next chapter of my life following the union with Patrick, the other senior leaders and team members are planning to continue to drive the business model, and I am confident that North American has aligned with the right business partner to grow the North American brand and further embed the philosophies that have allowed us to be successful. Patrick is a natural fit for our operation as we are poised for growth. The additional manufacturing and distribution expertise and resources that Patrick brings can help propel North American and its team members to the next level.”

The acquisition of North American was funded under Patrick’s newly expanded credit facility and includes the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment. Patrick will continue to operate the business on a stand-alone basis under the North American brand name in its existing facilities.

The company noted that with the credit facility expansion in conjunction with the North American acquisition, Patrick entered into a first amendment, dated August 31, to its current credit agreement. The first amendment expands the existing five-year $250 million senior secured credit facility to $300 million and replenishes the capacity under the credit agreement to continue to make permitted acquisitions.