Drew Acquires Northwest Manufacturer of RV Furniture and Mattresses
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WHITE PLAINS, N.Y., Jan. 31, 2011 - Drew Industries Incorporated (NYSE: DW), a leading supplier of components for recreational vehicles (RV) and manufactured homes, today reported that its wholly-owned subsidiary, Lippert Components, Inc., acquired the assets and business of Nampa, Idaho-based Home-Style Industries, and its affiliated companies ("Home-Style"). The purchase price of $7.25 million was paid from available cash, and Drew expects the acquisition of Home-Style to be immediately accretive to earnings.
Home-Style manufactures a full line of upholstered furniture and mattresses, primarily for towable recreational vehicles, in the Northwest market. Home-Style's sales for 2010 were approximately $12 million. Lippert Components currently manufactures RV furniture and mattresses in Indiana through its Seating Technology division, which it acquired in July 2008, but does not serve the Northwest RV market, making Home-Style a strong strategic complement to Seating Technology.
"The acquisition of the assets and business of Home-Style represents another successful step in our long-term strategy of increasing our content per RV," said Fred Zinn, Drew's President and CEO. "Our strong balance sheet allowed us to complete this acquisition without incurring debt. With no debt and still more than $25 million in available cash, we have the resources to continue to pursue expansion opportunities that we believe will yield favorable returns on our investment."
Randy Raptosh and Tony Doramus, the former owners of Home-Style, have agreed to provide assistance with the transition, and Terry Frisk, Home-Style's, General Operations Manager has entered into an employment contract with Lippert Components. Frisk will continue to be responsible for Home-Style's day-to-day operations.
"Home-Style has an excellent management team, and a great reputation in the RV market," said Jason Lippert, CEO of Lippert Components. "The expanding Northwest RV market is particularly attractive to us, and acquiring the Home-Style business will allow us to quickly capture the leading market share for furniture and mattresses in that region. Our management team has done an outstanding job of integrating the operations of Seating Technology, while at the same time gaining market share and improving production efficiencies. Our goal is to achieve the same type of success with Home-Style."
About Drew
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 and leveling devices for RVs, and trailers primarily for hauling boats. Currently, from 26 factories located throughout the United States, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. Additional information about Drew and its products can be found at www.drewindustries.com.
SOURCE Drew Industries Incorporated
CONTACT:Fred Zinn,President and CEO,Phone: +1-914-428-9098,Fax: +1-914-428-4581,Drew@drewindustries.com
Web Site: www.drewindustries.com
