Drew Industries Inc., a leading supplier of components for recreational vehicles and manufactured homes, today (Aug. 29) announced that its wholly owned subsidiary, Kinro Inc., acquired the business and assets of Starquest Products LLC and its affiliate Qualitec Manufacturing LLC. This is the company’s fourth acquisition of 2011, which together add more than $70 million in annualized sales.
According to a news release, Starquest has annual sales of approximately $22 million, comprised primarily of windows for truck caps, which are fiberglass enclosures that fit over the bed of pick-up trucks, painted to automotive standards and designed to exact truck bed specifications. Starquest also manufactures windows and doors for horse trailers and buses. The purchase price of $22.6 million was funded with available cash and approximately $12 million of borrowings pursuant to Drew’s $50 million line of credit. Drew expects the acquisition to be immediately accretive to earnings.
“Starquest is a great company, and highly respected in its industries, with a 50% market share for windows for truck caps and an increasing share in the horse trailer market,” said Fred Zinn, president and CEO for White Plains, N.Y.-based Drew. “This is an excellent opportunity to accelerate our diversification into related markets.”
The key managers of Starquest have entered into employment agreements with Kinro, and will continue to manage the business. “The Starquest team has developed strong relationships throughout their industries, and we expect to build on that strength,” said Jason Lippert, CEO of Kinro, and its sister company, Lippert Components Inc.. “As in our all of our businesses, management’s responsiveness to the needs of our customers is the key to success.”
“We are very pleased that the business we have seen thrive will continue to be managed by our outstanding team,” said Kelly Rose, chairman, and Mike Schoeffler, CEO, who were the two principals of Starquest. “With the financial and strategic support that Kinro and Lippert Components can provide, we are confident that the Starquest business will continue to grow.”