ELKHART, IN - Laminated wood products maker Patrick Industries, Inc. (NASDAQ: PATK) acquired the business and select assets of Creative Wood Designs, Inc., an $18 million Ligonier, IN manufacturer of hardwood furniture, hardwood tables, chairs, dinettes, trim, fascia, mouldings, and other miscellaneous products for the recreational vehicle (RV) industry.
Creative Wood Designs will operate on a standalone basis under its own brand name in its existing 250,000 square foot facility in Ligonier. The purchase price for the assets was approximately $5.7 million, including a contingent payment based on future performance, all funded underPatrick Industries' revolving credit facility.
The Creative Wood Designs acquisition, for which Patrick Industries says it paid $5.7 million, is Patrick's sixth acquisition since June 2011 and its third this year. In March Patrick Industries Inc. purchased the business and assets of Decor Manufacturing LLC of Tualatin, OR, for approximately $4.4 million. In May, Patrick Industries reported first quarter sales of $107 million, up 57 percent.
The Creative Wood Designs deal structured partly on performance payouts, allows Patrick to "increase our product offerings, market share, and per unit content," said CEO Todd Cleveland, Patrick Industries CEO. "We are excited to leverage our operational talent and expertise, particularly as it relates to our own custom hardwood manufacturing knowledge and processes, with those of Creative." As a major supplier in the RV hardwood furniture market Creative Wood will be "an asset to our organization as we continue to focus on providing new and innovative products."
Patrick Industries, based in Elkhardt, IN, major manufactured products include decorative vinyl and paper panels, countertops, wrapped profile mouldings, cabinet doors and components, interior passage doors, hardwood furniture, exterior graphics, and slotwall and slotwall components. It operates in 12 states and sell building products for the recreational vehicle, manufactured housing, kitchen cabinet, household furniture, fixtures and commercial furnishings, marine, and other industrial markets across the U.S.
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