Drew Industries Incorporated (NYSE: DW), a leadingsupplier of components for recreational vehicles (RVs) and manufactured homes,today announced that its wholly-owned subsidiary, Lippert Components, Inc., hasreached an agreement in principle to acquire certain assets and the business ofStar Design, LLC., an Elkhart, Indiana-based manufacturer of thermoformed sheetplastic products for the RV, bus and specialty vehicle industries.
Closing of the transaction, anticipated to take placewithin 30 days, is subject to completion of due diligence, agreement on finalterms, the execution of definitive transaction documents and satisfaction ofcustomary closing conditions. The purchase price is expected to beapproximately $12 million, which would be paid at closing from available cashand borrowings under the Company’s $75 million line of credit.
“Star Design has an excellent management team, and agreat reputation in the markets they operate,” said Drew’s President ScottMereness. “And we look forward to the Star Design management, includingKevin Gipson, President of Star Design, continuing to serve existing customersafter the transaction is completed. In 2013 we relocated our RV thermoformingplastic production from Texas to an Elkhart, Indiana location large enough toaccommodate expected growth. We have continued to grow our RV and specialtymarkets plastics business since then, and we are excited to boost furthergrowth with the acquisition of Star Design.”
Lippert Components believes the additional product linesand diversified customer base will accelerate Lippert Components’ expansioninto specialty markets. Star Design has annual sales of approximately $10million.
Star Design Chairman Kelly Rose, who will not remain withthe business, believes he is leaving the business and operations team in goodhands. “Star Design has experienced strong growth in the past few years,and we are confident Lippert Components will continue to strategically drivethe business forward,” said Kelly Rose. “We also believe LippertComponents will benefit by adding our experienced team, and also provide theStar 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 ofrecreational vehicles and manufactured homes. In addition, Drew manufacturescomponents for adjacent industries including buses; trailers used to haulboats, livestock, equipment and other cargo; truck caps; modular housing; andfactory-built mobile office units. Drew’s products include steel chassis; vinyland aluminum windows and screens; slide-out mechanisms and solutions; axles andsuspension solutions; furniture and mattresses; thermoformed bath, kitchen andother 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 informationabout Drew and its products can be found at www.drewindustries.com.