23/05/2017

23 May 2017
23 May 2017, Comments Comments Off on LCI acquires Lexington
LCI acquires Lexington

LCI Industries (NYSE: LCII) announced that its wholly-owned subsidiary, Lippert Components, Inc. (“LCI®”), has acquired the business and certain assets of Lexington, LLC (“Lexington”). Headquartered in Elkhart, Indiana, Lexington manufactures high quality seating solutions for the marine, RV, transportation, medical and office furniture industries. Sales of the acquired business for the twelve months ending December 2017 are anticipated to be approximately $60 million.

“We are excited to add Lexington’s business and employees to our growing portfolio of furniture solutions for the marine, RV and adjacent industries,” said LCI’s President Scott Mereness. “LCI is the leading provider of furniture solutions for the RV towable industry, and with the addition of Lexington’s high quality products, design and manufacturing teams, and strong customer relationships, the leading supplier of pontoon furniture as well.”

The purchase price was $40.0 million, which was paid at closing from available cash and borrowings under the Company’s $200 million line of credit. After funding this acquisition, LCI remains well-positioned to take advantage of other investment opportunities.

Jeff Wysong, President of Lexington, will remain with LCI to lead the acquired business under the direction of Ryan Smith, Vice President of Lippert Interiors. “LCI is a great strategic fit for our company as well as our customers, and I am excited to be a part of their dynamic team. LCI has vast resources and great teams that will certainly help strengthen Lexington as we combine with LCI’s marine divisions to offer even better solutions to the marine market and its customers.”

“Our combined marine furniture team is talented and innovative, as well as experienced in managing growth,” added Jason Lippert, LCI’s Chief Executive Officer. “Lexington is our largest acquisition in the past 20 years, and is representative of our strategy of quickly assembling a portfolio of companies and products that will help us become a major contributor to marine component designs and solutions. We expect to leverage our purchasing, sales, distribution and administrative capabilities to improve the profitability of this business, and we expect this acquisition to be immediately accretive to LCI’s earnings.”