Elkhart, Ind.-based material and components supplier Patrick Industries Inc. announced today (May 31) that it has completed the acquisition of Dowco Inc., a designer and manufacturer of custom designed boat covers and bimini tops, full boat enclosures, mounting hardware, and other accessories and components for the marine market, from CMW Holding Company.
Dowco is headquartered in Manitowoc, Wis., and has additional manufacturing facilities located in Lebanon, Mo., Fort Wayne, Ind., and Little Falls and Pine City, Minn. Dowco’s trailing 12-months revenue through April 2018 was approximately $37 million. The company expects the acquisition to be immediately accretive to net income per share.
“The acquisition of Dowco and its growing portfolio of innovative recreational marine products is a great fit within our existing offerings of recognizable high quality brand companies, and provides us with a tremendous runway to further grow our position as a value-added component supplier to the marine industry,” stated Todd Cleveland, chairman and chief executive officer of Patrick.
“Dowco has a proven track record of creatively and consistently adapting to the changing dynamics of the growing marine industry and providing just-in-time value-added solutions to its customer base,” stated Andy Nemeth, president of Patrick. “This acquisition is well-aligned with our strategic initiatives and capital allocation strategy and we look forward to working with the Dowco team to help further drive brand value. Consistent with previous acquisitions, we will support Dowco 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.”
Chuck Webster Jr., president and principal of Dowco, stated, “After Dowco’s more than 40 years as a family-owned, specialty manufacturing business, I am pleased to transition the company to Patrick which will continue to help drive and support the Dowco marine team and their plans for continued growth through innovation, quality products, and high quality customer service. Patrick’s strategic resources in the marine industry will help secure Dowco’s future for the benefit of its valued customers, team members, and suppliers.”
The acquisition of Dowco includes 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 Dowco on a standalone basis under its brand name in its existing facilities.