Patrick Industries Inc. announced that it has completed the acquisition of G.G. Schmitt & Sons Inc., a designer and manufacturer of customized hardware and structural components, including marine towers, seats, ladders, handrails, port lights, and other metal hardware and related products, primarily for major OEMs in the marine industry.
According to a press release, G.G. Schmitt is headquartered in Lancaster, Pa., with two additional locations in Sarasota, Fla., and Summerville, S.C., G.G. Schmitt’s trailing 12-months revenue through August 2019 was approximately $20 million and the company expects the acquisition to be immediately accretive to net income per share.
“G.G. Schmitt’s excellent reputation within the marine industry has been built over many decades based on its high-quality products, engineering expertise, and strong industry relationships,” said Todd Cleveland, chairman and CEO of Patrick. “This acquisition is aligned with our strategic initiatives and capital allocation strategy and we look forward to working with the G.G. Schmitt team to help further drive brand value.”
“We believe the marine industry is well-positioned for long-term growth, and we are excited to partner with the G.G. Schmitt team, which has a proven track record of consistently and creatively adapting to changing dynamics in the marine space. We continue to foster and strengthen our marine customer relationships with G.G. Schmitt’s high-quality, innovative custom product solutions and their legacy of excellent customer service,” said Andy Nemeth, president of Patrick. “G.G. Schmitt’s brand platform and highly engineered processes and products, as well as its longstanding relationships with leading marine OEM customers, have been instrumental in expanding its customer base within the recreational boating market. Consistent with previous acquisitions, we will support G.G. Schmitt 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.”
The acquisition of G.G. Schmitt includes the acquisition of accounts receivable, inventory, and machinery and equipment, and was funded under the company’s credit facility. Patrick will continue to operate G.G. Schmitt on a stand-alone basis under its brand name in its existing facilities.