ELKHART, Ind. - Patrick Industries, Inc. has acquired the business and certain assets of custom cabinetry manufacturer Cana Holdings, Inc. for $16.8 million.
Cana, with $18 million in revenue, has two operations, one in Elkhart, Indiana producing wood cabinets (and the hone of wood component giant Patrick Industries); and one in Americus, Georgia, which produces MDF laminate products. A Cana Components operation supplies cabinetry components to the manufactured housing industry - a key market for Patrick - along with residential, hospitality and institutional markets.
Cana drawer component
"The acquisition of Cana provides the opportunity for Patrick to capitalize on our existing cabinetry manufacturing expertise and expand our footprint as a premier supplier in both the manufactured housing and industrial markets," said Todd Cleveland, CEO of Patrick. "We are increasingly optimistic about the future potential for growth in the manufactured housing market."
Dave Geiger, president of Cana, said, "We believe this transaction provides a great opportunity for our stakeholders and provides a continued opportunity for growth with this great organization." Patrick will continue to operate the business on a stand-alone basis under the Cana brand name in its existing facilities.
"Consistent with our previous acquisitions, we will support Cana with a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the creative entrepreneurial spirit that has been so important to its success," aid Andy Nemeth, president of Patrick.
The acquisition of Cana was funded under the Company's existing credit facility and includes the acquisition of accounts receivable, inventory, machinery and equipment, and Cana's manufacturing facilities.
Patrick Industries, Inc. www.patrickind.com, with nearly $1 billion in sales last year, and trading on NASDAQ under PATK, is a major manufacturer of component products and distributor of building products serving the recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine, and other industrial markets and operates coast-to-coast through locations in 14 states. Its major manufactured products include decorative vinyl and paper laminated panels, countertops, fabricated aluminum products, wrapped profile mouldings, slide-out trim and fascia, cabinet doors and components, hardwood furniture, fiberglass bath fixtures, fiberglass and plastic component products, softwoods lumber, interior passage doors, RV painting, simulated wood and stone products, and slotwall panels and components.
Have something to say? Share your thoughts with us in the comments below.