Patrick Continues Acquisition Spree, Purchases Furniture Supplier
September 23, 2013 | 10:21 am CDT
Patrick Continues Acquisition Spree, Purchases Furniture Supplier

Patrick Continues Acquisition Spree, Purchases Furniture SupplierELKHART, IN - Patrick Industries Inc. has acquired John H. McDonald Co. Inc., a furniture supplier to the RV industry doing business under the Westside Furniture name. A statement by Patrick said the Westside purchase was funded under the company's existing credit facility.

Westside Furniture is Patrick's (NASDAQ: PATK) third acquisition this month. On Sept. 9 the company acquired Warsaw, IN-based Frontline Mfg. Inc. and Premier Concepts Inc. in a combined transaction. Frontline produces fiberglass bath fixtures for the RV and housing markets and has projected annual revenues of approximately $15 million for 2013. Premier is a custom fabricator of solid surface, granite, and quartz countertops for these same markets, with projected 2013 annual revenues of approximately $10 million. Patrick aquired the two companies, which will continue to operate as stand-alones under their current brand names, for a combined net purchase price of approximately $8.0 million.

In 2012, Patrick's buying spree included the acquisition of Middlebury Hardwood Products in October, Creative Wood Designs Inc. in September, Gustafson Lighting in July and Decor Mfg. LLC in March.

In a statement regarding today's Westside Furniture acquisition, Patrick President and CEO Todd Cleveland said, "Consistent with the acquisitions we have completed in the past, we will continue to allow the entrepreneurial spirit of Westside to thrive while supporting the business with the financial and operational foundation that will enable it to align with our company mission of bringing the highest quality products, service and value to our customers."

Patrick said the business will keep the Westside Furniture brand name and operate as a stand-alone in its existing 53,000-square-foot facility. Michael, Rose Ann, and John Morgan owned the wholesale supplier of products including La-Z-Boy recliners and the Serta Trump Home mattress line.

In a statement, John Morgan said, "My family and I have been actively engaged in the wholesale furniture business for the RV industry for the last seven years and we are excited to partner with an organization such as Patrick whose industry expertise and 'Customer First' approach are a natural fit with the core values, competencies and relationships that Westside has built over the last six decades in the local retail furniture business. As my parents begin the next chapter in their lives, they are confident that the company is in good hands and I am very much looking forward to the new opportunities that the Patrick team will bring to this business."

Founded in 1959, Patrick Industries manufactures and distributes components and building products for the recreational vehicle, manufactured housing, kitchen cabinet, household furniture, fixtures and commercial furnishings, marine and other industrial markets. Its brands include: Adorn, AIA Countertops, Creative Wood Designs, Custom Vinyls, Decorative Dynamics, Decor, Gravure Ink, Gustafson Lighting, Interior Components Plus, Infinity Graphics, Middlebury Hardwood Products, Patrick Distribution, Praxis Group and QAV.

The company reported net sales for the second quarter of 2013 increased 38.0% to $159.6 million compared to the same quarter of 2012. Net sales for the first six months of 2013 increased 38.2% to $301.7 million, up from $218.3 million in the same period in 2012.

Have something to say? Share your thoughts with us in the comments below.