OEM and aftermarket supplier Drew Industries and its subsidiary Lippert Components agreed to an acquisition that would expand the supplier’s OEM and aftermarket lineup by adding the seating and chassis component division of Dometic Group’s Atwood Mobile subsidiary for $12.5 million.
For Dometic, the divestiture is a move to manage its portfolio, focusing its product line on climate, hygiene, sanitation and food and beverage, CEO and President Roger Johansson said in a written statement.
The companies announced the deal, which includes a manufacturing facility, in news releases on Thursday (Oct. 27).
Based in Elkhart, Indiana, sales of the acquired business were about $30 million in 2015, including OEM and “considerable aftermarket sales”, Drew reported in its release.
Products acquired in the acquisition include seating frames and related components, as well as Atwood’s manual, power and scissor jacks, leveling systems and controls, couplers and hitch balls, fifth wheel landing gear and braking components.
“Atwood’s chassis hardware products are a natural fit for LCI,” LCI President Scott Mereness said. “Additionally, we expect the seating frame business will create new synergies in our RV and Marine furniture businesses. This acquisition spans many of our existing core markets and adds significant aftermarket revenue, and opens up new adjacent industry opportunities for LCI.”
The purchase will be paid at closing from available cash. After funding this acquisition, Drew remains well-positioned to take advantage of other investment opportunities. The transaction is expected to be completed in November 2016.