Patrick Industries Inc.'s latest plastics acquisition could mean more shades of green in recreational vehicles.
The company has bought Parkland Plastics Inc., a producer and distributor of plastic panels made largely from recycled materials. Patrick Industries paid about $25 million for Parkland, with annual sales of about $30 million.
“Parkland is a pioneer in utilizing reclaimed polymers to engineer high-performance, non-fiberglass reinforced plastic panels that offer enhanced durability, attractive aesthetics and competitive pricing versus the traditional materials used in ceiling, wall and flooring product applications,” stated Patrick Industries CEO Todd Cleveland in a Feb. 29 news release.
Patrick Industries of Elkhart, Ind., and Parkland of Middlebury, Ind., are located in the heart of RV manufacturing. The acquisition means Patrick Industries can add recycled-content products to its wide array of plastics and other components for RVs, manufactured housing and other markets. Parkland has been emphasizing its green content in its marketing and boasts it is a member of the U.S. Green Building Council.
“Parkland's strong market position in both the RV and industrial markets, and reputation for providing industry leading products as well as design, development, customization and specialization, enhance Patrick's growth opportunities,” Patrick Industries President Andy Nemeth added.
Patrick Industries expanded its stake in plastic RV components last year by acquiring fiberglass parts makers Structural Composites of Indiana Inc. and Better Way Partners LLC.
Charles Yoder founded Parkland in 1990. Its offerings encompass wall and ceiling panels and moldings for interior use in RV, architectural, commercial, agricultural and other markets. Parkland doesn't specify which plastics it processes but said its Duro-Base plank and wainscoting system is recyclable under the “7”, or “other plastics,” classification. It touts its products as waterproof and resistant to fire, mold, abrasion and impact.
“After more than 25 years in business, Parkland's exceptional team and I are excited to partner with the Patrick organization, which shares our long-term vision to be a premier innovator of polymer-based products for the industries we serve,” Yoder noted in a news release.
Patrick Industries is enjoying strong sales in the RV sector, which accounts for 75 to 80 percent of its sales. Its 31 percent revenue hike in the fourth quarter of 2015 reflected recent acquisitions and a 4 percent rise in wholesale RV shipments. Manufactured housing, its second largest market, also buoyed the firm's sales as that sector shipped 14 percent more products in the fourth quarter compared with a year ago. For all of 2015, sales were up 25 percent to $920.3 million, and net income jumped 38 percent to $42.2 million.
