ELKHART, IN - Patrick Industries, Inc. (NASDAQ: PATK) acquired Middlebury Hardwoods, a $33 million RV millwork and wood components firm based in Middlebury, IN.
The buyout "will help us in becoming an industry leader in the cabinet door market in the industries that we serve," said Todd Cleveland, CEO of Patrick Industries, in a statement announcing the deal. Middlebury Hardwoods operates a 134,000 sq.ft. plant.
The Middlebury Hardwoods deal, structured as an asset purchase, is the fourth in a series of strategic acquisitions by Patrick Industries, which makes recreation vehicle interior components and kitchen cabinetry and furniture for manufactured housing.
Patrick's net sales for the third quarter of 2012 increased $35.5 million or 45.9%, to $112.9 versus the 2011 period. The sales increase reflected a 66% increase in recreational vehicle income; a 13% increase in revenue from the manufactured housing industry, which represented approximately 68% and 20% of third quarter 2012 net sales.
Patrick Industries says $18.7 million of its revenue increase came from acquisitions completed in 2011 and 2012.
Founded in 1985 as a manufacturer of hand crafted church furniture, Middlebury Hardwood Products says it still uses traditionally trained crafts people with centuries of Amish woodworking experience.
Lamb, who has been with Middlebury Hardwoods for all 27 years, says, "Patrick is a natural fit for our operation, and the additional manufacturing expertise and financial resources that they bring can help propel Middlebury Hardwoods to the next level."
Patrick's major manufactured products include decorative vinyl and paper panels, countertops, wrapped profile mouldings, cabinet doors and components, hardwood furniture, interior passage doors, exterior graphics, and slotwall and slotwall components.
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