Patrick Industries Inc. announced today (Dec. 11) that it has completed the acquisition of the business and certain assets of Elkhart, Ind.-based Nickell Moulding Co. Inc., a custom manufacturer of hardwood and wrapped mouldings and trim, custom wood frames, and door components for the recreational vehicle, retail and hospitality, manufactured housing, and other markets.
According to a news release, Patrick projects Nickell’s full-year 2017 revenues to be approximately $21 million. The total cash consideration paid was approximately $11 million and the company expects the acquisition to be immediately accretive to 2017 net income per share.
The acquisition of Nickell included the acquisition of accounts receivable, inventory, and machinery and equipment, and was funded under the company’s existing credit facility. Patrick will continue to operate Nickell on a stand-alone basis under its brand name in its existing facility.
“Nickell’s position as a high-quality national supplier of custom mouldings and frames complements our existing hardwoods expertise and product offerings, providing us with the opportunity to increase our RV and MH content per unit and leverage our capabilities in three of our core markets,” said Patrick CEO Todd Cleveland. “Nickell is an excellent fit with our entrepreneurial brand philosophy and this acquisition is well-aligned with our strategic initiatives and capital allocation strategy.”
“Nickell has continually invested in technology to stay at the forefront of process and quality improvement, and is well-known for its state-of-the-art design and custom manufacturing capabilities and excellent customer and supplier relationships,” said Andy Nemeth, president of Patrick. “Consistent with previous acquisitions, we will support Nickell 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.”
George Nickell, founder and president of Nickell, stated, “After more than 36 years in business, we look forward to partnering with Patrick which is a natural fit with our value proposition to the various markets we serve. Our team is energized to continue to drive the business model to further expand our presence and grow our market share.”