Patrick Industries Buys Foremost Fabricators
According to a news release, Foremost is a fabricator and distributor of fabricated aluminum products, fiber reinforced polyester sheet and coil, and custom laminated products primarily used in the recreational vehicle market. Patrick estimates Foremost’s 2014 annual revenues to be approximately $75 million and expects the acquisition to be immediately accretive to 2014 net income per share.
“The acquisition of Foremost, which is recognized as the industry leader in the laminated and fabricated roll formed aluminum product lines primarily used for exterior sidewalls in the RV market, will help us to bring new value added product lines to our customer base,” said Todd Cleveland, president and CEO of Elkhart, Ind.-based Patrick. “Consistent with our strategic growth initiatives in conjunction with our capital allocation and acquisition strategies, we are excited to have the opportunity to allow the entrepreneurial spirit of this highly respected organization to continue to thrive while supporting the business with the financial and operational foundation that will enable it to align with our company mission of bringing the highest quality products, service and value to our customers. In addition, the acquisition of Foremost will allow Patrick to further expand its presence in the RV market and increase our product offerings, market share and per-unit content.”
Bud Stout,CEO and founder of Foremost, noted, “The exceptional team at Foremost is excited and energized to join the Patrick organization whose core values, competencies, relationships, and customer first approach mirror those that we have worked hard to build and maintain on a consistent high quality basis. While I plan to begin the next chapter of my life following the union with Patrick, the other shareholders and team members are planning to continue to drive the business model, and I am confident that Foremost has aligned with the right business partner to grow the Foremost brand and further embed the philosophies that have allowed us to be successful. Patrick is a natural fit for our operation, and the additional manufacturing and distribution expertise and financial resources that they bring can help propel Foremost to the next level.”
The net purchase price for Foremost of approximately $45 million was funded under Patrick’s newly expanded credit facility and includes the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment. Patrick will continue to operate the business on a stand-alone basis under the Foremost brand name in its existing facilities.
“Foremost’s excellent reputation in the industry, which has been built upon years of providing high quality products and service and industry leading expertise to its customer base, will allow us to establish a strong presence in the aluminum products market while providing opportunities to expand our array of products and services to the RV market through existing sales channels and into new markets,” said Mr. Cleveland. “We are honored to have the opportunity to partner with the Foremost team, and motivated by the challenge to uphold the highly respected legacy that they have created in the industry. Additionally, we are excited about bringing our two companies together to maximize resources, synergies and buying power, strengthen customer relationships through value added innovation and intuitive designs, bring a broad spectrum of products and price points to our customer base, and improve overall profitability through the continued execution of our strategic plan.”