Patrick Industries, Inc. Completes Acquisition of John H. McDonald Co., Inc.
d/b/a Westside Furniture
ELKHART, Ind., Sept. 23, 2013
ELKHART, Ind., Sept. 23, 2013 /PRNewswire/ --Patrick Industries, Inc.
(NASDAQ: PATK) ("Patrick" or the "Company") announced today the acquisition of
the business and certain assets of Goshen, Indiana-based John H. McDonald Co.,
Inc., d/b/a Westside Furniture ("Westside"), a wholesale supplier of La-Z-Boy®
recliners and the Serta® Trump Home™ mattress line, among other furniture
products, to the recreational vehicle ("RV") industry. Westside marks the
Company's third business acquisition this year.
"We are very excited to welcome the highly respected Westside Furniture
business to the Patrick family and look to continue the legacy that Michael,
Rose Ann, and John Morgan have created. We look forward to working with John
to carry on the standards that have been set by Michael and Rose Ann, who now
can focus on enjoying their retirement years," said Todd Cleveland, President
and Chief Executive Officer of Patrick. "Westside will help us continue to
bring new and innovative product lines to our customers and John's creative
and value driven approach will be a great fit with our organization.
Consistent with the acquisitions we have completed in the past, we will
continue to allow the entrepreneurial spirit of Westside to thrive while
supporting the business with the financial and operational foundation that
will enable it to align with our Company mission of bringing the highest
quality products, service and value to our customers."
John Morgan, a principal owner and manager of Westside, said, "My family and I
have been actively engaged in the wholesale furniture business for the RV
industry for the last seven years and we are excited to partner with an
organization such as Patrick whose industry expertise and 'Customer First'
approach are a natural fit with the core values, competencies and
relationships that Westside has built over the last six decades in the local
retail furniture business. As my parents begin the next chapter in their
lives, they are confident that the company is in good hands and I am very much
looking forward to the new opportunities that the Patrick team will bring to
The purchase of Westside was funded under the Company's existing credit
facility.Patrick will continue to operate the wholesale furniture business on
a stand-alone basis under the Westside Furniture brand name in its existing
53,000 square foot leased facility. The Company expects the acquisition to be
accretive to 2013 earnings per share.
About Patrick Industries
Patrick Industries, Inc. (www.patrickind.com) is a major manufacturer of
component products and distributor of building products serving the
recreational vehicle, manufactured housing, kitchen cabinet, household
furniture, fixtures and commercial furnishings, marine, and other industrial
markets and operates coast-to-coast through locations in 11 states.Patrick's
major manufactured products include decorative vinyl and paper laminated
panels, countertops, wrapped profile mouldings, slide out trim and fascia,
cabinet doors and components, hardwood furniture, fiberglass bath fixtures,
interior passage doors, exterior graphics, and slotwall panels and
components. The Company also distributes drywall and drywall finishing
products, electronics, wiring, electrical and plumbing products, cement
siding, interior passage doors, roofing products, laminate and ceramic
flooring, shower doors, furniture, fireplaces and surrounds, interior and
exterior lighting products, and other miscellaneous products.
This press release contains certain statements related to future results, or
states our intentions, beliefs and expectations or predictions for the future,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
involve a number of risks and uncertainties that could cause actual results to
differ materially from either historical or anticipated results depending on a
variety of factors. Potential factors that could impact results include: the
impact of any economic downturns especially in the residential housing market,
pricing pressures due to competition, costs and availability of raw materials,
availability of commercial credit, availability of retail and wholesale
financing for residential and manufactured homes, availability and costs of
labor, inventory levels of retailers and manufacturers, levels of repossessed
residential and manufactured homes, the financial condition of our customers,
retention and concentration of significant customers, the ability to generate
cash flow or obtain financing to fund growth, future growth rates in the
Company's core businesses, the ability to effectively manage the costs and the
implementation of the new enterprise resource management system, the
successful integration of acquisitions, stock price fluctuations, interest
rates, oil and gasoline prices, the outcome of litigation, adverse weather
conditions impacting retail sales, and our ability to remain in compliance
with our credit agreement covenants. In addition, national and regional
economic conditions and consumer confidence may affect the retail sale of
recreational vehicles and residential and manufactured homes. The Company
does not undertake to update forward-looking statements, except as required by
law. Further information regarding these and other risks, uncertainties and
factors is contained in the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2012, and in the
Company's Form 10-Qs for subsequent quarterly periods, which are filed with
the Securities and Exchange Commission ("SEC") and are available on the SEC's
website at www.sec.gov.
SOURCE Patrick Industries, Inc.
Contact: Julie Ann Kotowski, Patrick Industries, Inc., 574-294-7511 /
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