Patrick Acquiring Component Supplier ‘Medallion’
Patrick Industries Inc. announced today (March 20) that it has completed the acquisition of the business and certain assets of Medallion Plastics Inc. and has expanded the size and extended the maturity date of its existing credit facility.
According to a press release, Elkhart, Inc.-based Medallion is a designer, engineer and manufacturer of custom thermoformed products and components which include dash and trim panels and fender skirts for the RV market, and complete interior packages, bumper covers, hoods, and trims for the automotive, specialty transportation and other industrial markets.
Medallion’s fiscal 2016 revenue was approximately $20 million. The total cash consideration paid for Medallion was approximately $10 million, and Patrick expects the acquisition to be immediately accretive to net income per share. Patrick will continue to operate the business on a stand-alone basis under the Medallion brand name in its four existing facilities.
“Medallion is recognized as a high-quality designer and manufacturer of a wide array of innovative custom thermoformed plastic components and its flexible manufacturing process allows it to produce virtually any thermoformed component to meet its customers’ needs,” said Todd Cleveland, CEO of Patrick, also based in Elkhart. “This acquisition represents a continued growth opportunity in combination with Patrick’s current thermoforming portfolio of companies and will allow us to capitalize on product synergies in adjacent markets.”
“Medallion’s high quality product lines, vast product engineering capabilities, technical expertise, and custom molds and tooling provide us with the opportunity to continue to drive our business model through expansion into other industrial markets, as well as further increase our RV content per unit,” said Patrick President Andy Nemeth. “Consistent with previous acquisitions, we will support Medallion 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.”
The acquisition of Medallion included the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the company’s existing credit facility.