Patrick Industries Inc. has acquired the business and certain assets of Angola, Indiana-based IMP Holdings LLC, doing business as Indiana Marine Products.
IMP is a manufacturer and distributor of fully-assembled helm assemblies, including electrical wiring harnesses, dash panels, instrumentation and gauges, and other products primarily for the marine market.
"As we continue to execute on our disciplined capital allocation strategy, the acquisition of IMP is a great fit within our portfolio of recognizable brand companies that highly complements our value proposition to the marine markets, and will help drive growth and synergy realization," said Patrick CEO Todd Cleveland in a statement.
IMP's full-year 2017 revenues were approximately $33 million. The total cash consideration paid was approximately $18.5 million, plus the potential for up to $11.5 million of additional consideration upon the achievement of certain performance metrics over the next three years.
The company expects the acquisition to be immediately accretive to net income per share.
The marine industry is well-positioned for continued growth, and Patrick is excited to further expand its presence in the industry as a key component supplier, said Patrick president Andy Nemeth.
"Consistent with previous acquisitions, we will support IMP with a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the entrepreneurial spirit that has been so important to its success,” Nemeth said.
"We are committed to growing our capacity and capabilities to be the best partners for our customers and the best employer for our associates,” said IMP president Michael Peters. “This partnership with Patrick will provide additional resources and experience to allow us to deliver on those commitments. We will continue to have the autonomy to operate our business and grow our relationships using the traditional IMP values of excellence in quality and delivery, placing our customer first, and displaying the highest level of integrity in all of our relationships."
The acquisition of IMP included the acquisition of accounts receivable, inventory, and machinery and equipment, and was funded under the company's existing credit facility. Patrick will continue to operate IMP on a stand-alone basis under its brand name in its two existing facilities.