Drew Industries Acquires Manufacturer of Custom Boat Trailers
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Drew's Lippert Components Subsidiary Acquires Extreme Engineering
WHITE PLAINS, N.Y., July 11 -- Drew Industries Incorporated (NYSE:DW) today announced that its wholly-owned subsidiary Lippert Components, acquired the assets and business of Riverside, California- based Extreme Engineering, Inc., a manufacturer of specialty trailers for high-end boats, along with its affiliate, Pivit Hitch, Inc.
The purchase price for the two companies was approximately $10.7 million, which Drew financed from its available cash. The acquired companies reported annual sales of approximately $12 million collectively in 2006. Extreme Engineering's Extreme Custom Trailers(R) are built according to customer specifications, and are sold through performance and ski boat manufacturers and dealers across the U.S.
"As with all of our acquisitions, we expect this to be immediately accretive to Drew's earnings," said Leigh J. Abrams, Drew's President and CEO. "The operations of Extreme Engineering will be an excellent fit with our existing California-based subsidiary Zieman Manufacturing, which manufactures specialty trailers primarily for smaller, less expensive boats. We also believe there will be numerous cost and marketing synergies from this acquisition, as well as other benefits from working together."
Lippert will continue production at Extreme Engineering's existing leased facility in Riverside, California. Lippert also intends to transfer certain existing specialty trailer manufacturing operations to Extreme's facility in connection with the anticipated consolidation of certain existing Zieman factories.
Edward Rowland and Thomas Hunsucker, the former owners and operating executives of Extreme Engineering, will continue to operate Extreme Engineering under three-year employment agreements with Lippert.
"Over the past decade, Extreme Engineering has been a leader in the marine industry for building high quality and innovative boat trailers, and we look forward to Eddie and Tom playing a significant role in the future expansion of Lippert's specialty trailer business in California and throughout the U.S.," said Jason D. Lippert, President and CEO of Lippert Components.
About Drew:
Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes. Drew's products include vinyl and aluminum windows and screens, doors, chassis, chassis parts, RV slide-out mechanisms and power units, leveling devices, bath and shower units, axles, bed lifts, steps, electric stabilizer jacks, and suspension systems, as well as trailers for hauling equipment, boats, personal watercraft and snowmobiles, and chassis and windows for modular homes and offices. Currently, from 41 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: Leigh J. Abrams, President and CEO of Drew Industries Incorporated, +1-914-428-9098, fax, +1-914-428-4581, Drew@drewindustries.com
Web site: www.drewindustries.com/
