Patrick Industries has reaffirmed its agreement to merge with LCI Industries after LCI received an unsolicited, nonbinding acquisition proposal from Monomoy Capital Partners.
Patrick and LCI previously agreed to combine in an all-stock transaction that would create a larger component solutions provider serving the outdoor enthusiast, housing, and transportation markets.
LCI notified Patrick that Monomoy had submitted the competing proposal. LCI’s board is evaluating the offer in accordance with its fiduciary responsibilities, but the board has not changed its recommendation supporting the existing merger agreement with Patrick.
Patrick said it will continue monitoring the situation while proceeding with its current strategy and its planned combination with LCI.
The proposed Patrick-LCI combination is centered on building a broader component platform across recreational vehicles, marine products, powersports, housing, and related markets.
Patrick operates an independent and diversified brand model and currently owns more than 85 brands serving original equipment manufacturers and aftermarket customers.
The company’s capabilities include product design, manufacturing, distribution, and transportation.
Patrick employs approximately 10,000 people and is headquartered in Elkhart, Indiana, one of the primary manufacturing centers for the U.S. recreational vehicle industry.
The competing proposal introduces a new variable into the pending transaction, although LCI continues to support its agreement with Patrick at this stage.
Because Monomoy’s proposal is nonbinding, the submission does not itself replace or terminate the Patrick merger agreement. LCI’s board will instead determine whether further engagement is warranted while continuing to comply with its obligations under the existing transaction.
Patrick said it remains focused on executing its broader vision around its outdoor enthusiast and housing businesses while the process continues.
