Patrick Industries Inc. has again expanded its thermoforming capacity for recreational vehicle and other markets with the acquisition of Medallion Plastics Inc.
Medallion designs, engineers and produces custom thermoformed products such as dash and trim panels and fender skirts for the RV market, plus complete interiors, bumper covers and other systems for automotive, specialty transportation and industrial markets. Both companies are based in Elkhart, Ind., in the heart of the RV manufacturing industry.
Medallion had sales of about $20 million last year. Patrick paid about $10 million in cash for the company, it announced in a March 20 news release.
Patrick CEO Todd Cleveland said Medallion's flexible manufacturing process "allows it to produce virtually any thermoformed component to meet its customers' needs." The purchase builds on Patrick's thermoforming subsidiaries and will allow synergies between the operations.
Medallion runs 18 engineered thermoforming stations that can make parts from a few square inches in size to more than 100 square feet, the company notes on its website. It uses a range of plastic sheets such as ABS and thermoplastic polyolefin, and can provide various coatings and laminations. Medallion's four facilities in Elkhart include a prototype and production tooling operation. Medallion received gold and silver awards in heavy-gauge thermoforming products in 2016 and 2015, respectively, from the Society of Plastics Engineers.
Patrick already had three thermoforming operations before the acquisition, in Elkhart and Bremen, Ind., and Munford, Tenn. It bought the Elkhart and Munford operations last year. Munford was included in Patrick's August 2016 purchase of BH Electronics Inc., a thermoformer that makes dash panel assemblies, complete electrical systems and other systems for marine markets.
Also last year, Patrick bought Parkland Plastics Inc. of Middlebury, Ind., an electronics, cabinetry, sheet metal and wire and cable businesses. Parkland is a producer of polymer-based wall panels, protective molding, flooring and related items for RV, architectural and industrial markets.
Patrick's sales to the RV industry, its largest market, grew 29 percent in the fourth quarter, propelled by acquisitions. The RV industry overall saw a 19 percent jump in wholesale unit shipments in the period. Sales to manufactured housing, the other key market, increased 28 percent in the quarter, nearly double the percentage rise in manufactured housing wholesale unit shipments.
The RV market experienced its best fourth quarter in more than 40 years, stated Patrick President Andy Nemeth in a financial news release.
