Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and manufactured homes, today announced that its wholly-owned subsidiary, Lippert Components, Inc., has reached an agreement in principle to acquire certain assets and the business of Star Design, LLC., an Elkhart, Indiana-based manufacturer " />
Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RVs) and manufactured homes, today announced that its wholly-owned subsidiary, Lippert Components, Inc., has reached an agreement in principle to acquire certain assets and the business of Star Design, LLC., an Elkhart, Indiana-based manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries.
Closing of the transaction, anticipated to take place within 30 days, is subject to completion of due diligence, agreement on final terms, the execution of definitive transaction documents and satisfaction of customary closing conditions. The purchase price is expected to be approximately $12 million, which would be paid at closing from available cash and borrowings under the Company's $75 million line of credit.
"Star Design has an excellent management team, and a great reputation in the markets they operate," said Drew's President Scott Mereness. "And we look forward to the Star Design management, including Kevin Gipson, President of Star Design, continuing to serve existing customers after the transaction is completed. In 2013 we relocated our RV thermoforming plastic production from Texas to an Elkhart, Indiana location large enough to accommodate expected growth. We have continued to grow our RV and specialty markets plastics business since then, and we are excited to boost further growth with the acquisition of Star Design."
Lippert Components believes the additional product lines and diversified customer base will accelerate Lippert Components' expansion into specialty markets. Star Design has annual sales of approximately $10 million.
Star Design Chairman Kelly Rose, who will not remain with the business, believes he is leaving the business and operations team in good hands. "Star Design has experienced strong growth in the past few years, and we are confident Lippert Components will continue to strategically drive the business forward," said Kelly Rose. "We also believe Lippert Components will benefit by adding our experienced team, and also provide the Star Design team with great opportunities for professional growth and advancement."
About Drew Industries
From 32 factories located throughout the United States, Drew Industries, through its wholly-owned subsidiary, Lippert Components(TM), supplies a full line of components for the leading manufacturers of recreational vehicles and manufactured homes. In addition, Drew manufactures components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; truck caps; modular housing; and factory-built mobile office units. Drew's products include steel chassis; vinyl and aluminum windows and screens; slide-out mechanisms and solutions; axles and suspension solutions; furniture and mattresses; thermoformed bath, kitchen and other products; manual, electric and hydraulic stabilizer and lifting systems; chassis components; entry, baggage, patio and ramp doors; entry steps; awnings; electronics; aluminum extrusions; and other accessories. Additional information about Drew and its products can be found at www.drewindustries.com.