ELKHART, Ind. - Patrick Industries Inc. has acquired Nickell Moulding Co. Inc. for a total cash consideration of approximately $11 million.
Announced Dec. 11, the acquisition includes accounts receivable, inventory, and machinery and equipment, and was funded under the Patrick's existing credit facility. A statement from Patrick said it will continue to operate Nickell Moulding on a stand-alone basis under its brand name and in its existing facility.
Based in Elkhart, Indiana, Nickell Moulding is a custom manufacturer of hardwood and wrapped mouldings and trim, custom wood frames, and door components for the recreational vehicle (RV), retail and hospitality, manufactured housing (MH) and other markets. The company's projected revenues for 2017 are $21 million.
"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."
George Nickell, founder and president of Nickell, said, "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."
Andy Nemeth, president of Patrick, added,"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." He continued,"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."
Nickell Moulding is the seventh acquisition this year for the diversified components manufacturer. On Nov. 30, Patrick announced the $81 million acquisition of LMI Inc., a provider of specialty building and RV products, including items for closets and the bathroom. Patrick also acquired transportation and logistics provider Indiana Transport Inc. on Nov. 1; Baymont Inc., a provider of fiberglass showers, tubs, and tile systems for manufactured housing, on Sept. 5 for approximately $3.4 million; and Wire Design, a manufacturer of wire harnesses for the RV, marine and industrial markets on July 17 for approximately $10.9 million. On May 1, Patrick acquired Leisure Product Enterprises LLC, a holding company with three manufacturing subsidiaries: Marine Concepts/Design Concepts, Florida Marine Tanks, and Marine Electrical Products for approximately $73.5 million. Patrick kicked off the 2017 acquisition spree with the March 20, estimated $10 million purchase of Medallion Plastics Inc., a designer, engineer and manufacturer of custom thermoformed products and components for the RV, automotive, specialty transportation and other industrial markets.
Patrick also acquired eight companies in 2016: Sigma Wire International LLC and KRA International LLC in December, BH Electronics Inc. in August, Vacuplast LLC dba L.S. Manufacturing Inc. in July, Mishawaka Sheet Metal LLC in June, Cana Holdings Inc. in May, The Progressive Group in March, and Parkland Plastics Inc. in February.
Based in Elkhart, Indiana, Patrick Industries Inc. (NASDAQ: PATK) is a components manufacturer and distributor of building products for the RV, manufactured housing, marine, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, and other industrial markets. The company has operations in 20 states and in China.
Products manufactured include: decorative vinyl and paper laminated panels, slotwall panels, countertops, wrapped profile mouldings, cabinet doors and components, furniture, specialty bath and closet building products, softwoods lumber, interior passage doors, fabricated aluminum products, slide-out trim and fascia, fiberglass bath fixtures and tile systems, thermoformed shower surrounds, fiberglass and plastic helm systems, electrical systems components, aluminum fuel tanks, and CNC molds and composite parts.
The company also distributes drywall products, electronics and audio systems components, wiring, electrical and plumbing products, cement siding, raw and processed lumber, FRP products, interior passage doors, roofing products, laminate and ceramic flooring, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting, and other products.
Have something to say? Share your thoughts with us in the comments below.