Patrick Industries Inc. continues to add plastics in its acquisition spree directed at the recreational vehicle market, its major business sector.
The Elkhart, Ind., company said July 5 that it acquired the business and assets of thermoformer Vacuplast LLC, which operates under the name L.S. Manufacturing Inc.
Patrick Industries paid about $11 million for L.S. Manufacturing, an Elkhart-based firm with sales of about $12 million for the 12 months ended May 31.
L.S. Manufacturing makes a wide variety of thermoformed plastic parts and components, mainly for RV manufacturers but also for industrial applications.
“In addition to increasing our RV content per unit, complementing our existing product portfolio at our Charleston [Corp.] operations, and bringing new and innovative product lines, the acquisition of L.S. Manufacturing allows us the opportunity to further expand our presence and capabilities in the growing plastics market,” noted Patrick Industries CEO Todd Cleveland in a news release.
The purchase of L.S. Manufacturing was the second plastics deal Patrick Industries made this year. On Feb. 29 it bought Parkland Plastics Inc., a Middlebury, Ind., producer of plastic panels made largely from recycled materials. Also this year it acquired small companies that make metal products and custom cabinetry for RV markets, as well as a representative for brand name electronics.
Patrick Industries bought Charleston Corp. in late 2014. Charleston, which is based in Bremen, Ind., mainly makes plastic and fiberglass components for RVs and the vehicle aftermarket.
L.S. Manufacturing will be bolstered by Patrick Industries' financial and operational resources, according to Patrick Industries President Andy Nemeth.
Patrick Industries' sales for the first quarter at $278.6 million were 25 percent ahead of last year's period, largely due to a similar hike in sales to the RV sector, which was partly fueled by acquisitions this year and in 2015. Net income in the first quarter was 12 million, 32 percent higher than a year earlier.