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RV Suppliers Patrick, LCI Terminate Merger Discussions
In a Statement, Companies Said They Were Unable to Reach 'Mutually Agreeable Terms'
Recreational vehicle suppliers LCI Industries and Patrick Industries Inc. terminated discussions over a potential merger after they were unable to reach “mutually agreeable terms” on a deal.
The companies announced the end of talks May 4 in statements that provided limited details. Patrick Industries said there was consensus on “leadership of the combined company, continued execution of Patrick’s strategic plan and vision, and other key aspects of a potential transaction” but they couldn’t reach agreement on other unidentified terms.
LCI and Patrick Industries last month confirmed a Bloomberg News report that they were exploring what they described as a merger of equals. The talks were centered on a potential all-stock transaction.
Shares of LCI were down 1.5% in light trading before the markets opened in New York on May 4, while there were no trades of note in Patrick Industries.
Patrick Industries makes products for the interiors of RVs, such as countertops, furniture and decorative materials. LCI, which does business as Lippert, focuses on mechanical systems and hardware such as suspensions, chassis and foldable sun decks.
Both companies are based in Elkhart, Ind., which is known as the RV capital of the world. Their customers include Winnebago Industries Inc. and Thor Industries Inc. — the largest RV manufacturer with brands including Airstream and Jayco — according to Bloomberg supply chain data.
Patrick Industries ranks No. 22 on the Transport Topics list of top manufacturing carriers.
