Blog Coverage Drew Industries Adds Seating and Chassis Component Division of Atwood Mobile Products in a String of Acquisitions

LONDON, UK / ACCESSWIRE / October 28, 2016 / Active Wall St. blog coverage looks at the headline from Drew Industries Inc. (NYSE: DW) as the company announced on October 27th, 2016, that its wholly-owned subsidiary, Lippert Components, Inc. (LCI®), has agreed to acquire the business, manufacturing facility, and certain assets of the seating and chassis component division of Atwood Mobile Products, a subsidiary of Dometic Group. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

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The Agreement

Atwood Mobile Products which is based in Elkhart, Indiana, for the twelve months ended December 31, 2015, reported sales of approximately $30 million, consisting of sales to OEMs, as well as significant aftermarket sales. Drew Industries will pay $12.5 million for the acquisition, which will be paid at closing from available cash. After funding this acquisition, Drew Industries remains well-positioned to take advantage of other investment opportunities. The transaction is expected to be completed in November 2016.

“Atwood has been a household name in the RV and trailer markets for over 30 years,” said Scott Mereness, President of LCI.

Products acquired in the acquisition include seating frames and related components, as well as Atwood’s manual, power and scissor jacks, levelling 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,” added Mereness, “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.”

String of Purchases

This is the fourth purchase in 2016 for Drew. On January 27th, 2016, Drew Industries acquired the business and certain assets of the pontoon furniture manufacturing operation of Highwater Marine, LLC, located in Elkhart, Indiana. Revenue of the marine furniture business acquired from Highwater Marine for the twelve months ended December 2015 was estimated to be $20 million. The purchase price was $10.0 million. Additionally, the parties also entered into a five year supply agreement as part of the transaction.

The company acquired on February 29th, 2016, certain assets and business from Flair Interiors, Inc., a manufacturer of RV furniture with locations in Goshen and Fort Wayne, Indiana. Sales of the acquired business for 2015 were approximately $25 million. The purchase price was $8.1 million.

On May 4th, 2016, Drew Industries acquired Project 2000 S.r.l., a Florence, Italy based manufacturer of motorized entry steps, bed lifts, and RV accessories for a price of €16.3 million (US$18.8 million). Sales of the acquired business for 2015 were approximately €10 million (US$12 million).

Stock Performance

Drew Industries’ share price finished yesterday’s trading session at $88.71, sliding 4.17%. A total volume of 400.08 thousand shares exchanged hands, which was higher than the 3 months average volume of 226.44 thousand shares. The stock has rallied 37.79% and 44.99% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have surged 47.40%. The stock is trading at a PE ratio of 20.59 and has a dividend yield of 1.35%.

Earnings Alert: Drew will release its Q3 2016 financial results before the market opens on November 3rd, 2016, and will also host a conference call on the same day at 11 a.m. ET to discuss the results and other business matters.

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