ELKHART, Ind., July 17, 2017 /PRNewswire/ — Patrick Industries, Inc. (NASDAQ: PATK) (“Patrick” or the “Company”) announced today that it has completed the acquisition of the business and certain assets of Elkhart, Indiana-based Wire Design, a manufacturer of wire harnesses for the recreational vehicle (“RV”), marine and industrial markets. Wire Design’s trailing 12-months revenue through June 2017 was approximately $10.0 million and the total cash consideration paid for Wire Design was approximately $10.9 million. The Company expects the acquisition to be immediately accretive to net income per share.
“Wire Design is recognized as a specialized designer, engineer and manufacturer of high-quality custom wire harnesses and will afford us the opportunity to expand our offerings of wire harnesses and electrical systems to meet the needs of our customer base across several of our primary markets,” said Todd Cleveland, Chief Executive Officer of Patrick. “This acquisition represents a continued growth opportunity and strategic fit in combination with Patrick’s current portfolio of wire harness brands and companies and will allow us to continue to capitalize on product and growth synergies in our primary and adjacent markets.”
“The acquisition of Wire Design will increase our content per unit in both the RV and marine industries as we continue to add innovative, value-added, quality products to our stable, further expanding our capabilities and increasing our value proposition to our customers,” said Andy Nemeth, President of Patrick. “Consistent with previous acquisitions, we will support Wire Design with a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the entrepreneurial spirit that has been so important to its success.”
Mike Doering, President of Wire Design, said, “After more than 30 years in business, our team is eager to partner with the Patrick organization to help further grow the Wire Design brand and bring a variety of product solutions to many different customers and markets. Patrick is a natural fit for our operation as we are poised to achieve the next level in our strategic growth plan.”
The acquisition of Wire Design included the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the Company’s existing credit facility. Patrick will continue to operate the business on a stand-alone basis under the Wire Design brand name in its existing facility.
Patrick Industries, Inc.
Patrick Industries, Inc. is a major manufacturer of component