Elkhart, Ind.-based Patrick Industries Inc. has acquired Everett, Wash.-based Sea-Dog Corp., a distributor of marine and powersports products and accessories with a sister injection molding company, Sea-Lect Plastics.
Sea-Dog's combined full-year 2020 sales were about $20 million, according to a March 15 news release about the deal.
Terms were not disclosed.
Founded in the early 1930s, Sea-Dog sells hardware and accessories to other distributors, wholesalers, retailers and online merchants. Sea-Lect Plastics offers product design, tooling and molding to other companies and government entities like the U.S. Navy.
With estimated injection molding sales of $2.9 million, Sea-Lect ranks No. 502 among North American injection molders, according to Plastics News' latest ranking.
Patrick Industries, which was founded in 1959, posted sales of $2.5 billion for 2020 with 8,700 employees at 170 production and distribution facilities serving the recreational vehicle and manufactured housing markets in addition to marine.
Sea-Dog was an attractive acquisition target because it is an established brand primarily in the marine aftermarket with a reputation for quality, innovation and strong customer relationships, according to Patrick President and CEO Andy Nemeth.
"This acquisition adds to our aftermarket platform and provides us with additional resources and channels to further expand our marine products and accessories offerings to the markets we serve across the U.S. and internationally," Nemeth said in the release.
Patrick Industries operates coast to coast in various locations in the U.S. and Canada as well as China and Netherlands. The company's marine products include fiberglass and plastic helm systems, boat covers, towers, tops and frames, interior passage doors and air handling products.
Nemeth singled out Sea-Dog President Brad Nysether and his brother Mark Nysether as being new partners along with their employees. The brothers are the descendants of the company founder, Hans "Action" Broson Sneve, who hired his nephew, Orville Nysether, to be the first mate on the company showboat called M.V Sea-Dog.
The Sea-Dog was equipped with gear from manufacturers represented by the company. Sneve and Orville Nysether navigated the coast of the Pacific Ocean, from Alaska to Mexico, to host open houses in all public ports. The company now offers catalogs of products from anchors and antenna to plumbing and ventilation.
Patrick will operate Sea-Dog on a stand-alone basis under its brand names in its existing facilities.
"Sea-Dog's global distribution network and strong brand recognition afford us the opportunity to leverage Patrick's existing product portfolio and drive synergies as we continue to expand our presence in the leisure lifestyle markets," Nemeth said. "Consistent with previous acquisitions, we will support Sea-Dog with a financial and operational foundation that will allow it to continue to capitalize on its core competencies while preserving the entrepreneurial spirit and brand that have been so important to its success."
Brad Nysether said he and his brother Mark are pleased to join Patrick Industries and continue the Sea-Dog legacy after nearly a century as a family-owned businesses.
"We look forward to partnering with Patrick and its independent brand strategy to further broaden our geographic reach and expand our product offerings," Brad Nysether said in the release. "Patrick's strategic resources and marine industry presence, capabilities and vision align with our values and goal of providing the highest quality innovative solutions to our customers."
Patrick officials expect the acquisition to be immediately accretive to net income per share. The company has made 53 acquisitions since 2010, according to its online investor presentation.
Patrick Industries is publicly traded on the Nasdaq Stock Market. Its previous acquisitions included a pair of thermoformers in 2016.