Elkhart, Ind.-based supplier Patrick Industries Inc. announced Monday (April 30) that it has completed the acquisition of Dehco Inc., a distributor and manufacturer of parts and accessories primarily for the recreational vehicle, manufactured housing, marine and other industrial markets.
According to a press release, Dehco’s primary products include flooring, kitchen and bath products, adhesives and sealants, electronics, appliances and accessories, LP tanks, and other related building materials. Dehco operates one manufacturing facility in Indiana and four distribution centers located in Indiana, Oregon, Pennsylvania and Alabama. Dehco’s full-year 2017 revenues were approximately $88 million.
The total cash consideration paid by Patrick was approximately $53 million. The company expects the acquisition to be immediately accretive to net income per share.
“Dehco’s complementary product lines align with our existing RV product portfolio and provide us with an opportunity to leverage our existing manufacturing and distribution platforms and nationwide geographic footprint to further increase our RV content per unit and product offerings in the primary markets we serve,” said Patrick CEO Todd Cleveland.
“This acquisition is well-aligned with our strategic initiatives and capital allocation strategy and we look forward to working with the Dehco team to help further drive brand value,” said Andy Nemeth, president. “Consistent with previous acquisitions, we will support Dehco 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.”
Jim Schwartz, CEO of Dehco, noted, “After more than 60 years in business, Tom Nagy, president of Dehco, and our exceptional team are 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 over the last six decades.”
The acquisition of Dehco included the acquisition of accounts receivable, inventory, prepaid expenses, real estate, and machinery and equipment, and was funded under Patrick’s existing credit facility. Patrick will continue to operate Dehco on a stand-alone basis under its brand name in its existing facilities.