Patrick Industries Inc. announced today (March 5) that it has completed the acquisition of the business and certain assets of Angola, Ind.-based IMP Holdings LLC, doing business as Indiana Marine Products (IMP), a manufacturer and distributor of fully-assembled helm assemblies, including electrical wiring harnesses, dash panels, instrumentation and gauges, and other products primarily for the marine market.
According to a release, IMP’s full-year 2017 revenues were approximately $33 million. The total cash consideration paid was approximately $18.5 million, plus the potential for up to $11.5 million of additional consideration upon the achievement of certain performance metrics over the next three years. The company expects the acquisition to be immediately accretive to net income per share.
“As we continue to execute on our disciplined capital allocation strategy, the acquisition of IMP is a great fit within our portfolio of recognizable brand companies that highly complements our value proposition to the marine markets, and will help drive growth and synergy realization,” said Patrick CEO Todd Cleveland.
“We believe the marine industry is well-positioned for continued growth and we are excited to partner with the IMP team to further expand our presence as a key component supplier in this space through high-quality, innovative product solutions and excellent customer service, along with the capital resources needed for success,” said Patrick President Andy Nemeth. “Consistent with previous acquisitions, we will support IMP 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.”
Michael Peters, president of IMP, noted, “We are committed to growing our capacity and capabilities to be the best partners for our customers and the best employer for our associates. This partnership with Patrick will provide additional resources and experience to allow us to deliver on those commitments. We will continue to have the autonomy to operate our business and grow our relationships using the traditional IMP values of excellence in quality and delivery, placing our customer first, and displaying the highest level of integrity in all of our relationships.”
The acquisition of IMP 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 IMP on a stand-alone basis under its brand name in its two existing facilities.