Drew Industries Finalizes Buyout of Star Design
Drew Industries Inc., parent to suppliers Lippert Components Inc. and Kinro Inc., has completed the previously announced acquisition of certain assets and the business of Star Design LLC, an Elkhart, Ind.-based manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries.
According to a news release, the purchase price was $12.3 million, which was paid at closing from borrowings under Drew’s $75 million line of credit with JPMorgan Chase and Wells Fargo. After funding the acquisition, the company said it remains “well-positioned to take advantage of investment opportunities to further improve its results.”
“We are very excited about acquiring Star Design and adding their innovative products to our ever-growing product lineup,” said Scott Mereness, Drew’s president. “We expect to leverage our extensive marketing and distribution capabilities to continue to grow this business. Further, we expect this acquisition to be immediately accretive to Drew’s earnings.”
Lippert said it believes the additional product lines and diversified customer base will accelerate its expansion into specialty markets. Star Design has annual sales of approximately $10 million.