Patrick Industries and LCI Industries announced that they have entered into a definitive agreement to combine in an all-stock merger.
The deal will create a premier component solutions provider serving the outdoor enthusiast, housing, transportation, and other markets.
Under the terms of the agreement, LCI shareholders will receive 1.2440 shares of Patrick common stock for each share of LCI common stock they own.
After the transaction closes, Patrick shareholders will own approximately 52% of the combined company, and LCI shareholders will own approximately 48%.
The boards of directors of both companies unanimously approved the transaction.
Patrick and LCI said the combination brings together complementary product portfolios and longstanding customer relationships across North America and Europe.
The combined company is expected to serve a broad range of OEMs and consumers across recreational vehicle, marine, powersports, truck and adventure/off-road, transportation, automotive, housing, and other markets.
Patrick brings integrated design-to-delivery capabilities, while Lippert adds expertise in highly engineered OEM and aftermarket structural components.
Together, the companies expect to offer a broader portfolio of brands, more efficient operations, enhanced R&D investment, and stronger commercialization capabilities.
The companies said the merger will support differentiated, cost-effective solutions to improve affordability, strengthen value chain alignment, and enhance customer service.
The combined company is also expected to be more diversified across end markets, which could help improve stability and support durable growth across industry cycles.
Patrick and Lippert said their adjacent product capabilities will create a diversified portfolio across interior, exterior, structural, and mechanical systems.
The combination is also expected to expand aftermarket channel access and distribution networks.
Lippert’s established brands, distribution infrastructure, and channel access are expected to advance Patrick’s strategy of growing its aftermarket presence.
The companies said the expanded aftermarket platform should help support revenue growth, reduce exposure to OEM production cycles, and improve the combined company’s margin profile.
On a pro forma basis, the combined company’s trailing 12-month results as of March 2026 would be approximately $8.1 billion of revenue, adjusted EBITDA of $1 billion inclusive of synergies, and free cash flow of $508 million inclusive of synergies.
The transaction is expected to generate more than $150 million of run-rate cost synergies within three years of closing.
Those synergies are expected to come primarily from procurement, SG&A efficiencies, engineering best practices, and improved supply chain management.
The combined company is expected to have pro forma net leverage of 2.1x.
Its capital allocation strategy will focus on reinvesting operating cash flow in the business within a disciplined net leverage target of 2.25x to 2.5x.
Priority areas are expected to include strategic growth, automation-focused capital expenditures, share repurchases, and a balanced dividend policy.
Upon closing, Patrick CEO Andy Nemeth will serve as CEO of the combined company.
The combined company’s board will include 12 directors, with six designated by Patrick and six designated by Lippert.
Patrick director Todd Cleveland will serve as chair of the board, and Lippert interim CEO and director Johnny Sirpilla will serve as vice chair.
The combined company will be headquartered in Elkhart, Indiana.
The transaction is expected to close in the first half of 2027, subject to approval by shareholders of both companies, required regulatory approvals, and other customary closing conditions.
Support: J.P. Morgan Securities is serving as lead financial advisor and Baird is serving as co-lead financial advisor to Patrick Industries, while McDermott Will & Schulte is serving as legal advisor.
Perella Weinberg Partners is serving as financial advisor to LCI Industries, and Kirkland & Ellis is serving as legal advisor. FGS Global is serving as strategic communications advisor to LCI Industries.
Patrick Industries is a component solutions provider serving OEMs and aftermarket customers in the RV, marine, powersports, and housing markets.
LCI Industries, through its Lippert subsidiary, supplies engineered components to the outdoor recreation and transportation markets.
KEY QUOTES:
“Today marks the beginning of an exciting new chapter in the evolution of our two companies as we continue on our journey to positively impact and deliver value for our customers, our team members, shareholders, and the communities we serve. We have long respected the Lippert team and their impressive, innovative capabilities across the solutions they deliver and are thrilled to reach this milestone. We have two highly successful, well-established organizations with long track records of strategic and organic growth, innovation, and customer service, supported by incredible talent across each enterprise, deep expertise, and a shared commitment to excellence. Together, we will create a premier partnership-oriented platform for the global outdoor enthusiast ecosystem, housing and transportation markets that is more resilient, and better positioned to serve all of our customers – from OEMs to the end consumer. We remain dedicated to our culture and values focused on humility and trust, the reinvestment in our vision, business, and strategy with the goal of delivering an even brighter future for the stakeholders we serve.”
Andy Nemeth, CEO of Patrick Industries
“This combination represents a defining moment for Lippert. Our shareholders will benefit from ownership in a more diversified company with the financial and operational strength to grow revenues and deliver outstanding value to shareholders and other stakeholders. As two complementary businesses with strong legacies deeply rooted in Elkhart and our other local communities, we understand the potential and positive impact this combination can deliver. Together, we can offer a broader, more innovative, competitive, and affordable portfolio of products and product solutions, as we work with our partners and customers in key segments to drive greater value for end consumers. We will also continue to invest in our growth and combined capabilities, creating new opportunities for team members and charting an exciting new future for the combined company.”
Johnny Sirpilla, Interim CEO of Lippert
