Transportation and building products producer and distributor Patrick Industries Inc. has expanded again in fiberglass parts for recreational vehicles and similar markets.
The company announced May 26 it acquired Structural Composites of Indiana Inc., a custom molder of composite front and rear caps and roofs for RV markets as well as components for other transportation, marine and industrial markets.
The purchase follows a similar strategic move Patrick Industries made a few months ago by acquiring Better Way Partners LLC, which operates FRP plants in New Paris, Bremen and Syracuse, Ind.
SCI, based in Ligonier, Ind., will log sales of about $18 million this year, according to Patrick Industries. A spokeswoman indicated the two acquired Ligonier factories in the SCI deal will continue operating as a stand-alone business. Patrick Industries paid about $20 million for SCI.
“SCI has an excellent long-standing reputation for innovative high-quality, low-defect designs, customized engineered fiberglass components and customer service,” noted Patrick Industries President and CEO Todd Cleveland in a news release. The purchase enhances Patrick Industries' position in FRP parts for RV markets, which account for about 80 percent of the company's sales.
“We will support SCI with the financial and operational foundation that will allow it to preserve the entrepreneurial spirit that has been so important to its success,” Cleveland added.
Patrick Industries will add manufacturing expertise and resources to the Ligonier business to help it grow, explained SCI CEO and founder Ken Baranowlski in a news release.
Elkhart, Ind.-based Patrick Industries has been increasing its content in RV manufacturing. Last year it lifted the average value of components it sells to RV customers by 19 percent to about $1,629 per vehicle. For early 2015, RV growth helped fuel a 31.3 percent hike in sales to $223.4 million in the first quarter. Operating profit jumped 32.3 percent to $15.6 million compared to the first quarter of 2014.