Drew Industries Inc. today (Dec. 6) reported that its wholly owned subsidiary, Lippert Components Inc., has expanded its chassis customization operation through the acquisition of the business and certain assets of Indiana-based M&M Fabricators.
M&M, which has annual revenues of about $3 million, modifies chassis primarily for producers of transit buses, specialized commercial vehicles and Class A and Class C motorhomes. Automotive manufacturers of these types of chassis produce standard-length chassis, and M&M customizes the chassis lengths to meet the particular needs of its customers. The chassis modification process requires an array of fabricated steel parts that fit Lippert’s existing capabilities, creating immediate efficiencies.
“Lippert Component’s existing chassis customization operation will be consolidated into the M&M facility, which we acquired in this transaction,” said Jason Lippert, chairman and CEO of Goshen, Ind.-based Lippert. “This will enable us to significantly reduce overhead costs and improve production efficiencies.”
“This acquisition will help us grow and continue to diversify our products into the RV motorhome market, as we have consistently done for more than a decade in the towable RV market,” said Scott Mereness, president of Lippert Components. “Further, a portion of M&M’s business has been with manufacturers of transit buses, another area of diversification that we have been focusing on in recent months.”
The acquisition price was $1 million at closing, which was approximately the fair value of the facility, equipment and working capital acquired. In addition, Lippert Components has agreed to pay up to an additional $100,000 per year for the next five years, depending on annual sales of this operation.