ELKHART, Ind., Nov. 30, 2018 /PRNewswire/ -- LCI Industries
(NYSE: LCII) today announced that its wholly-owned subsidiary,
Lippert Components Manufacturing, Inc. ("LCI"), a supplier of a
broad array of highly engineered components for the leading
original equipment manufacturers ("OEMs") of leisure vehicles and
mobile transportation, and the related aftermarkets of those
industries, has acquired the business and certain assets of the
furniture manufacturing operation of Smoker Craft Inc., a leading
pontoon, aluminum fishing, and fiberglass boat manufacturer located
in New Paris, Indiana. First year
revenue for the marine furniture business acquired from Smoker
Craft is estimated to be approximately $35.0
million.
"We are thankful to our partners at Smoker Craft for entrusting
us with their furniture operations," said Ryan Smith, Senior VP of Sales & Operations
for LCI. Continued Smith, "Over the last four years, LCI has become
one of the leading suppliers of marine furniture to the industry.
We've grown to the size we have because of the foundation of trust
we've built with our marine customer base, along with the steady
flow of innovation that we're pouring into the industry. I'm
excited to add the Smoker Craft product to our seating catalog and
I assure all of Smoker Craft's customers that they are in good
hands with LCI."
The purchase price was $28.0
million, which was paid at closing from borrowings under
LCI's $325 million line of credit.
Additionally, the parties entered into a long-term supply agreement
as part of the transaction.
"Today is an exciting day for Smoker Craft, Inc. As part of our
long range growth strategy, we are announcing the sale of our
furniture division to Lippert Components," said Doug Smoker, President and CEO of Smoker Craft,
Inc. Continued Smoker, "We feel very comfortable with the Lippert
team and believe the cultures at Lippert and Smoker Craft are an
ideal fit. In the future this move will free up manufacturing
space, giving us the ability to concentrate on building boats. We
are excited about this relationship, as well as the as the team
concept and core values Lippert brings to our business."
"We are excited to add Smoker Craft's furniture manufacturing
business to the LCI family. This is very similar to the furniture
manufacturing operation that we purchased from Godfrey Marine in 2016, and that transition went
extremely well," said Jason Lippert,
LCI CEO. Continued Lippert, "This will be our fourth marine
furniture acquisition in the last four years and as we continue to
grow in the marine space, more opportunities continue to present
themselves. This line of business has grown so significantly that
earlier this year we opened a 700,000 square foot facility in
Fort Wayne, Indiana to serve our
marine customers. We anticipate that the Smoker Craft furniture
manufacturing business will remain in New
Paris while we transition the operation into the LCI family.
I have the utmost confidence in Ryan
Smith and his teams to ensure that there is a smooth
manufacturing transition with Smoker Craft. We expect this
acquisition to be immediately accretive to LCI's earnings."
About LCI Industries
From over 65 manufacturing and distribution facilities located
throughout the United States and
in Canada, Ireland, Italy, and the United Kingdom, LCI Industries, through its
wholly-owned subsidiary, LCI, supplies, domestically and
internationally, a broad array of engineered components for the
leading OEMs in the recreation and industrial product markets,
consisting of recreational vehicles and adjacent industries,
including buses; trailers used to haul boats, livestock, equipment,
and other cargo; trucks; boats; trains; manufactured homes; and
modular housing. The Company also supplies components to the
related aftermarkets of these industries primarily by selling to
retail dealers, wholesale distributors, and service centers. LCI's
products include steel chassis and related components; axles and
suspension solutions; slide-out mechanisms and solutions;
thermoformed bath, kitchen, and other products; vinyl, aluminum,
and frameless windows; manual, electric, and hydraulic stabilizer
and leveling systems; furniture and mattresses; entry, luggage,
patio, and ramp doors; electric and manual entry steps; awnings and
awning accessories; electronic components; televisions and sound
systems; navigation systems; backup cameras; appliances; and other
accessories. Additional information about LCI and its products can
be found at www.lci1.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
with respect to our financial condition, results of operations,
business strategies, operating efficiencies or synergies,
competitive position, growth opportunities, acquisitions, plans and
objectives of management, markets for the Company's common stock
and other matters. Statements in this press release that are not
historical facts are "forward-looking statements" for the purpose
of the safe harbor provided by Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended, and involve a number of risks and
uncertainties.
Forward-looking statements, including, without limitation, those
relating to our future business prospects, net sales, expenses and
income (loss), cash flow, and financial condition, whenever they
occur in this press release are necessarily estimates reflecting
the best judgment of the Company's senior management at the time
such statements were made. There are a number of factors, many of
which are beyond the Company's control, which could cause actual
results and events to differ materially from those described in the
forward-looking statements. These factors include, in addition to
other matters described in this press release, pricing pressures
due to domestic and foreign competition, costs and availability of
raw materials (particularly steel and aluminum) and other
components, seasonality and cyclicality in the industries to which
we sell our products, availability of credit for financing the
retail and wholesale purchase of products for which we sell our
components, inventory levels of retail dealers and manufacturers,
availability of transportation for products for which we sell our
components, the financial condition of our customers, the financial
condition of retail dealers of products for which we sell our
components, retention and concentration of significant customers,
the costs, pace of and successful integration of acquisitions and
other growth initiatives, availability and costs of production
facilities and labor, employee benefits, employee retention,
realization and impact of expansion plans, efficiency improvements
and cost reductions, the disruption of business resulting from
natural disasters or other unforeseen events, the successful entry
into new markets, the costs of compliance with environmental laws,
laws of foreign jurisdictions in which we operate, and increased
governmental regulation and oversight, information technology
performance and security, the ability to protect intellectual
property, warranty and product liability claims or product recalls,
interest rates, oil and gasoline prices, the impact of
international, national and regional economic conditions and
consumer confidence on the retail sale of products for which we
sell our components, and other risks and uncertainties discussed
more fully under the caption "Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2017, and in the Company's
subsequent filings with the Securities and Exchange Commission. The
Company disclaims any obligation or undertaking to update
forward-looking statements to reflect circumstances or events that
occur after the date the forward-looking statements are made,
except as required by law.
Contact: Brian M. Hall,
CFO
Phone: (574) 535-1125
E Mail: LCII@lci1.com
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SOURCE LCI Industries