Acquisition Streak Continues For Patrick Industries
BH Electronics was founded in 1991 and it produces dash panels and electronics harnesses.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowElkhart-based Patrick Industries Inc. (Nasdaq: PATK) has completed its fourth acquisition in as many months. The deal for BH Electronics Inc. of Tennessee is valued at $35 million.
BHE has five facilities throughout the Southeast, which will be operated by Patrick under the BHE name and on a standalone basis.
Patrick announced a nearly 40 percent increase in profit last quarter, compared to the same period a year earlier and executives gave much of the credit to the new additions. The company says during the second quarter, it completed the acquisitions of Mishawaka Sheet Metal LLC and Elkhart-based Cana Holdings Inc. and also announced the acquisition of Vacuplast LLC, another Elkhart company. The three transactions total some $42 million.
The deal for BH Electronics helps boost Patrick’s marine business interests. Chief Executive Officer Todd Cleveland says "BHE has an industry leading reputation for providing innovative, superior quality products and service to many of the leading marine industry OEMs in the U.S. This acquisition represents a significant growth opportunity to leverage the presence of BHE and Patrick’s business units currently serving the marine industry by entering complementary markets where our combined expertise, quality products and service are highly compatible."
The company says the acquisition also allows gives it an entry into some markets it isn’t in currently. Patrick President Andy Nemeth says "BHE’s vast product engineering and technical expertise provides us with the opportunity to enter into new product lines that are used extensively in the marine industry with complementary applications in the RV space. Additionally, the combination of Patrick’s marine fiberglass product lines and BHE’s electronic dash panels and wiring harnesses will allow us to provide a fully integrated, plug and play solution on a ‘just in time’ basis to the marine industry, in both the Midwest and the Southeast, allowing them to maximize internal efficiencies and production capabilities."
The BHE management team will continue to run the business.
Patrick’s business units are in 16 states. The company manufactures components for the recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine and other industrial markets.