Two component manufacturers focused on outdoor recreation, housing and transportation announced a definitive agreement to combine in an all-stock merger. The transaction pairs Patrick Industries with LCI Industries in a deal approved unanimously by both companies' boards.
Under the merger terms, each holder of LCI common stock will receive 1.2440 shares of Patrick common stock for every share they own. Following the close, Patrick shareholders are expected to own roughly 52% of the combined company while LCI shareholders will own about 48%.
The companies said the merged entity will be positioned as a provider of component solutions across the outdoor enthusiast, housing and transportation markets. Management highlighted anticipated cost savings and operational improvements as core financial drivers of the transaction.
Specifically, the companies expect to realize more than $150 million of run-rate cost synergies within three years of closing. Those efficiencies are expected to arise primarily from procurement savings, streamlined selling, general and administrative functions, engineering best practices and improved supply chain management.
On a pro forma basis, reflecting trailing twelve months results as of March 2026 and inclusive of projected synergies, the combined company would report approximately $8.1 billion of revenue and adjusted EBITDA of roughly $1.0 billion. Pro forma free cash flow inclusive of synergies would be about $508 million.
Leadership roles for the combined company were announced alongside the deal. Andy Nemeth, the current chief executive officer of Patrick, will serve as CEO of the newly combined firm. Patrick Director Todd Cleveland will assume the role of chair of the board, while Johnny Sirpilla, identified as Lippert Interim CEO and a director, will serve as vice chair of the board.
The board of directors for the combined company will consist of 12 members, with an equal split of six directors designated by Patrick and six designated by Lippert.
The merged company will be headquartered in Elkhart, Indiana. The companies indicated the transaction is expected to close in the first half of 2027, subject to approval by both companies' shareholders, receipt of required regulatory approvals and other customary closing conditions.
What this means for markets and sectors
- Manufacturing and components: consolidation aims to capture procurement and engineering efficiencies.
- Outdoor and housing supply chains: the combined business will target integrated component solutions across these end markets.
- Transportation components: the transaction aligns product portfolios for mobility-related customers.
Transaction details (selected)
- Exchange ratio: 1.2440 Patrick shares for each LCI share.
- Ownership split at close: Patrick shareholders ~52%, LCI shareholders ~48%.
- Projected run-rate cost synergies: greater than $150 million within three years.
- Pro forma trailing twelve months to March 2026: ~$8.1 billion revenue; ~$1.0 billion adjusted EBITDA; ~$508 million free cash flow (all inclusive of synergies).
- Headquarters: Elkhart, Indiana.
- Expected close: first half of 2027, subject to shareholder and regulatory approvals and customary conditions.