Patrick Industries to acquire Minnesota company
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Elkhart-based Patrick Industries Inc. on Thursday announced plans to acquire a manufacturer of components for the powersports industry. The all-cash deal for Sportech LLC, based in Elk River, Minnesota, is valued at $315 million.
Sportech makes a variety of components, including integrated door systems, roofs, canopies, windshields, and fender flares for powersports original equipment manufacturers, adjacent market OEMS and aftermarket.
During a conference call Thursday morning, Patrick CEO Andy Nemeth called Sportech an ideal partner to grow the company’s outdoor enthusiast segment.
“This acquisition helps Patrick to embed a leadership position as a supplier in the highly appealing and complimentary powersports market, which we view as strategically important for a number of reasons,” Nemeth said. “We view powersports, which includes side-by-sides, golf carts, motorcycles, snowmobiles, personal watercraft, and other off-road vehicles as a natural extension of our outdoor enthusiast market.”
Sportech operates four facilities in Minnesota, including its headquarters and an assembly plant in Elk River, as well as a distribution center and third-party logistics facility in Rogers, Minnesota. The company also has a third-party logistics facility in Huntsville Alabama.
Sportech’s 2023 revenue totaled $255 million, representing a 17% five-year annual growth rate, Patrick said. Nemeth added that following the acquisition, the company expects revenue from its outdoor enthusiast market to represent more than 70% of Patrick’s total revenue.
“Patrick is in a great position to support the Sportech team, given our strong balance sheet, existing OEM relationships, and synergistic product lines and manufacturing processes in tandem with our existing powersports businesses,” Nemeth said.
The company employs more than 430 people across its entire footprint. When the deal closes, Sportech will continue to operate as a subsidiary of Patrick under the Sportech name and in its existing facilities.
The acquisition is expected to close on or before Jan. 24, pending regulatory approval and customary closing conditions.