Drew to Acquire Rights to An Innovative Wall Slide
Drew Industries Inc. Thursday (Feb. 18) reported that its wholly owned subsidiary, Lippert Components Inc., agreed in principle to acquire certain intellectual property and other assets from Michigan-based Schwintek Inc.
The purchase would include several products for which patents are pending, including innovative RV wall slides that are considerably lighter, more space-efficient and more reliable than previous slide-out designs, according to a news release. The purchase price, undisclosed at this time, is expected to include cash payable at closing, plus an earn-out depending on future unit sales.
It is expected that the cash portion of the purchase price payable at closing will be funded from available cash. Closing of the transaction, which is anticipated within 45 days, is subject to completion of due diligence, agreement on final terms and conditions, the execution of definitive transaction documents and satisfaction of customary closing conditions.
“Mike Schwindaman, an owner of Schwintek, would serve as a consultant to Lippert Components,” said Jason Lippert, president and CEO of Drew subsidiaries, Lippert Components and Kinro Inc. “Mike has an exceptional ability to create highly innovative, cost-effective products for RVs, as well as solutions for RV weight reduction. We expect that he will continue to bring us great ideas, and we hope to have a long and productive partnership with Mike.”
“With our proven ability to manufacture and market quality products and provide excellent customer service, we are confident these products will quickly gain acceptance throughout the RV industry,” said Fred Zinn, Drew resident and CEO. “Through this transaction, we would gain a significant opportunity to increase our content in both towable RVs and motorhomes.”
In a separate transaction, Lippert Components acquired the patent-pending design for a six-point leveling system for fifth-wheel RVs. The purchase price was $1.4 million payable at closing, plus an earn-out depending on future unit sales of the system.