Comprehensive M&A data with integrated detailed company information
Lippert to acquire CURT
Posted on Friday, 22 November 2019 12:34
LCI Industries, via subsidiary Lippert Components, has agreed to pick up branded towing products and truck accessories manufacturer and distributor CURT Group for USD 340.00 million.
The acquiror will finance the deal using cash on hand and debt and is expecting the addition of the business to advance its diversification efforts, double the size of the aftermarket unit and bring a highly-complementary portfolio.
CURT maintains a robust product line comprising hitches, towing electricals, ball mounts and cargo management, among other items.
It claims to have a leading market position and serves customers cross e-commerce, direct-to-installer and distribution channels.
There are 1,000 employees at CURT across 11 warehouses in the US and Canada, as well as manufacturing plants in Wisconsin, South Dakota and Florida.
In the 12 months to 30th September 2019, the group generated revenue of USD 255.00 million.
For Lippert, the deal enhances its growth profile of the aftermarket business, as well as adding a large, installed customer base.
It also leverages robust distribution network, product technologies and advanced engineering, while immediately boosting growth, profit margins and earnings per share in 2020.
Closing is subject to regulatory approvals, among other conditions, and is expected to complete before the end of 2019.
Jason Lippert, chief executive of LCI Industries, said: “With a track record of delivering remarkable financial performance and strong cash flow generation, we believe that the addition of CURT will further advance our long-term growth strategy to bring our core competencies to new, attractive markets and diversify our business to drive outperformance throughout the cycle.”
The acquiror claims to be the leading supplier of components to the recreational vehicle and residential housing industries with 70 facilities in the US, Canada, Italy and the UK.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 745 deals targeting motor vehicle parts manufacturers announced worldwide since the start of 2019.
In the largest of these, ZF Friedrichshafen is buying WABCO Holding for USD 7.00 billion.
Other targets include HELLA, Hanon Systems EFP, Showa and Nikola.
© Zephus Ltd