Patrick Industries has signed a definitive agreement to acquire Sportech LLC, for approximately US$315 million.
The transaction is expected to close on or before January 24 2024, subject to customary closing conditions and regulatory approval.
Sportech, based in Minnesota designs and manufactures high-value, complex component solutions to powersports OEMs, adjacent market OEMs and the aftermarket.
The company has recorded estimated 2023 calendar year revenue of approximately $255 million, resulting in a five-year compound annual growth rate of 17%.
The acquisition is expected to be immediately accretive to profit margins and net income per share.
“We are delighted to welcome Sportech’s chief executive officer, Jim Glomstad, and the entire Sportech team to the Patrick family,” said Andy Nemeth, Patrick CEO. “Sportech’s long history of passion-driven innovation, profitable growth, and excellent customer service, along with its strong culture, is a great fit with our outdoor enthusiast vision and brand-forward go-to-market strategy.”
Established relationships
He added: “Sportech provides meaningful scale as a supplier of key and synergistic solutions to powersports OEMs, many of which Patrick has established relationships with through our RV, marine, and existing powersports businesses.
“Sportech offers a solid platform for future organic and strategic growth within the powersports market, enabling us to continue to accelerate our momentum in the attractive outdoor enthusiast space.”
Jim Glomstad commented: “We are confident we can continue to build on our current relationships and expand the portfolio of products and solutions we offer in partnership with our OEM customers while increasing our market share and becoming a valued contributor to Patrick’s vision for its Outdoor Enthusiast ecosystem.”
Following closing, Sportech will continue its operations as a wholly owned subsidiary of Patrick under the Sportech name and within its existing facilities.
