Elkhart, Ind.-based Patrick Industries Inc., a key supplier to the recreational vehicle, manufactured housing and industrial markets, announced plans today (Aug. 23) to expand operations at its AIA Countertops division in Syracuse, creating up to 65 new jobs by 2014.
According to a press release from the Indiana Economic Development Corp., Patrick plans to invest up to $3 million to purchase, renovate and equip a 142,000-square-foot facility located in Syracuse. As part of the project, new manufacturing equipment will be installed to support additional product lines, including new granite and quartz countertop fabricating lines. Patrick acquired AIA last September.
“Patrick Industries’ growth in Indiana bolsters our state’s already well-established manufacturing industry and provides new opportunities for Hoosier job seekers,” said Dan Hasler, secretary of commerce and CEO of the Indiana Economic Development Corp.
The AIA Countertops division, which currently has approximately 175 full-time employees in Syracuse, has been and expects to continue hiring additional manufacturing and production associates in conjunction with its growth needs.
“The capital investment we plan to make to expand our operations through the purchase and renovation of an existing facility in Syracuse that is in close proximity to our current location will afford us the opportunity to accommodate the significant growth we have recently experienced and more importantly, create new full-time positions for Indiana residents,” said Julie Ann Kotowski, director of investor relations at Patrick Industries. “We eagerly look forward to partnering with the state of Indiana, Kosciusko County and the city of Syracuse to promote job growth as we move forward with our expansion project that will increase our capacity and product offerings to the industries we serve.”
Founded in 1959, Patrick now operates 27 production and distribution facilities in 12 states across the country. Ten of these facilities are located in the Hoosier state. Outside of the recreational vehicle and manufactured housing industries, the company serves customers in the kitchen cabinet, marine, home furniture and commercial furnishings and fixtures markets.
The Indiana Economic Development Corp. offered Patrick Industries up to $325,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The town of Syracuse approved additional property tax abatement at the request of the Kosciusko Economic Development Corp.
“One of the key goals of the town’s economic development efforts is to keep our existing companies competitive, and we’re thrilled to partner with Patrick Industries and AIA Countertops to ensure its lasting success in Syracuse,” said Larry Siegel, Syracuse town council president. “We’re excited to see this expansion in a company that plays an important role in one of our key industries. Manufacturing in Syracuse continues to show strong signs of growth and is another example of our economy’s continued post-recession improvement.”
Patrick Industries Inc. announced today (Sept. 19) that it has completed the acquisition of certain assets of Syracuse, Ind.-based AIA Countertops LLC, a premier fabricator of DuPont Corian countertops, backsplashes, tables, signs and other products for the RV and commercial markets, for a net purchase price of approximately $5.7 million. AIA’s projected annualized revenues are approximately $20 million.
“The acquisition of AIA is a natural fit with Patrick’s existing RV and commercial businesses as it will afford us the opportunity to gain additional penetration and foothold in the RV and industrial market sectors and bring added value to our customers in terms of innovation, price, flexibility and product offering,” said Todd Cleveland, president and CEO for Elkhart, Ind.-based Patrick Industries. “Additionally, the strength and dedication of AIA’s management team, with more than 27 years of industry and operational experience, and its solid reputation in the marketplace will be an asset to our organization as we continue to capitalize on our core competencies and execute on our strategic initiatives.”
Patrick Industries said that the acquisition was primarily funded through borrowings under the company’s revolving credit facility and subordinated financing provided by Northcreek Mezzanine Fund I L.P. and an affiliate of Northcreek, in the form of secured senior subordinated notes. Northcreek is an existing lender to and shareholder of Patrick.
In addition, certain former members of AIA’s ownership group will carry a note receivable from Patrick Industries. AIA’s current management team will continue to manage the operation under the AIA name in its existing manufacturing facility following the closing.