Tuesday, July 01, 2008
DREW INDUSTRIES ACQUIRES ANOTHER COMPANY
WHITE PLAINS, N.Y., July 1 /PRNewswire-FirstCall/ -- Drew Industries Incorporated (NYSE: DW - News) today reported that its wholly owned subsidiary, Lippert Components, Inc. ("LCI"), completed the previously announced acquisition of the assets and business of Goshen, Indiana-based Seating Technology, Inc. and its affiliated companies ("Seating Technology"). The purchase price of $28.4 million was funded from available cash.
Seating Technology manufactures a wide variety of products primarily for towable RVs, including folding sofas for toy hauler RVs, a full line of upholstered furniture, mattresses, decorative pillows, wood-backed valences and quilted soft good products. This acquisition adds an entirely new product line for Drew.
Seating Technology's sales for 2007 were approximately $40 million, reflecting significant growth from its $11 million in sales in 2003. "We look to Seating Technology to continue to gain market share, despite the difficult conditions in the RV industry," said Leigh J. Abrams, Drew's CEO. Drew expects the acquisition of Seating Technology to be immediately accretive to earnings.
Rick Finnigan, majority owner of the Seating Technology companies, entered into a three-year consulting contract, while Joel DeVries, Vice President of Seating Technology entered into a three-year employment contract. DeVries will be responsible for Seating Technology's day-to-day operations, and will report to Jason Lippert, LCI's President and CEO.
"With these new product lines, we expect to leverage our extensive marketing and distribution capabilities to our existing customers, many of whom Seating Technology does not presently sell to," said Jason Lippert. "Seating Technology currently operates from five factories, which LCI has leased, and is currently solely a Midwest supplier to the towable RV industry. LCI will determine the viability of using its nationwide factory network to expand the territorial reach of Seating Technology's manufacturing and marketing capabilities. In addition, we also plan to explore other markets, such as RV motorhomes, and the manufactured housing and marine industries, in which Seating Technology products may have a potential market."
Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, axles, and upholstered furniture. In addition, Drew manufactures slide-out mechanisms for RVs, and trailers primarily for hauling boats.
Seating Technology manufactures a wide variety of products primarily for towable RVs, including folding sofas for toy hauler RVs, a full line of upholstered furniture, mattresses, decorative pillows, wood-backed valences and quilted soft good products. This acquisition adds an entirely new product line for Drew.
Seating Technology's sales for 2007 were approximately $40 million, reflecting significant growth from its $11 million in sales in 2003. "We look to Seating Technology to continue to gain market share, despite the difficult conditions in the RV industry," said Leigh J. Abrams, Drew's CEO. Drew expects the acquisition of Seating Technology to be immediately accretive to earnings.
Rick Finnigan, majority owner of the Seating Technology companies, entered into a three-year consulting contract, while Joel DeVries, Vice President of Seating Technology entered into a three-year employment contract. DeVries will be responsible for Seating Technology's day-to-day operations, and will report to Jason Lippert, LCI's President and CEO.
"With these new product lines, we expect to leverage our extensive marketing and distribution capabilities to our existing customers, many of whom Seating Technology does not presently sell to," said Jason Lippert. "Seating Technology currently operates from five factories, which LCI has leased, and is currently solely a Midwest supplier to the towable RV industry. LCI will determine the viability of using its nationwide factory network to expand the territorial reach of Seating Technology's manufacturing and marketing capabilities. In addition, we also plan to explore other markets, such as RV motorhomes, and the manufactured housing and marine industries, in which Seating Technology products may have a potential market."
Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, axles, and upholstered furniture. In addition, Drew manufactures slide-out mechanisms for RVs, and trailers primarily for hauling boats.
