Drew Industries Acquires Manufacturer of Patented Motorhome Steps
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WHITE PLAINS, N.Y., May 22: Drew Industries Incorporated (NYSE:DW) today announced that its wholly-owned subsidiary Lippert Components, acquired the assets and business of Ft. Worth-based Coach Step, a manufacturer of patented electric steps for motorhomes. The purchase price was approximately $3 million, which Drew financed from its available cash.
"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.
Lippert Components will continue to produce the Coach Step product in the seller's Ft. Worth facility for the next 60-90 days, and then shift production into one of Lippert's existing facilities in Indiana. Once production begins in Indiana, the Company expects to realize significant operating efficiencies and overhead reductions on the manufacture of Coach Step's products.
"Coach Step's products increase our presence in the motorhome market," said Jason D. Lippert, President and CEO of Lippert Components. "We believe the market for electric steps for motorhomes is between $10 million and $15 million. Coach Step reported sales of approximately $2 million in 2006, and we expect to increase sales by marketing these products to our existing customer base. The addition of Coach Step's products expands Lippert's product line of steps for both motorhomes and towable RVs, allowing us to better serve our customers."
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 42 factories located throughout the United States and one factory in Canada, 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 Drew Industries Incorporated, +1-914-428-9098, fax, +1-914-428-4581, Drew@drewindustries.com
Web site: www.drewindustries.com/
