Patrick Industries Buys Topline
ELKHART, Ind. — Patrick Industries Inc. acquired Topline Counters LLC of Sumner, Wash., in a deal announced Dec. 23. Terms of the transaction weren’t disclosed.
Topline operates three facilities in Washington state as a fabricator of natural-stone, quartz-surface, laminate and solid-surface kitchen and bathroom countertops for single-family and multi-family residential markets as well as the commercial high-rise and big-box retail markets.
“After more than 15 years growing our business, we look forward to continuing to drive our business model and expanding our market presence with the support of both the Topline team and the Patrick family,” said Josh Hulburt, Topline president. “We are excited to partner with the Patrick organization, which shares our long-term vision to be a premier high-quality supplier to the markets we serve.”
Topline’s trailing 12-month revenues through November 2019 were approximately $34 million.
“Topline possesses an excellent reputation in the various industrial markets it serves and has built long-standing relationships with residential home builders, commercial building contractors, kitchen and bath dealers, and big box retail companies based on delivering superior quality products and service,” said Todd Cleveland, Patrick chairman/CEO. “This acquisition is aligned with our strategic initiatives and capital allocation strategy and we look forward to working with the Topline team to help further drive brand value, growth and synergy realization.”
Patrick is a major manufacturer and distributor of component products and building products serving a wide variety of markets, including RV, marine, manufactured housing, residential housing, commercial furnishings, and other industrial markets.
“Topline’s brand platform provides Patrick with the opportunity to further expand our industrial geographic presence into the strong Pacific Northwest and western housing markets,” said Andy Nemeth, Patrick president. “In addition, this acquisition will strengthen our ability to leverage our existing industrial operations and product portfolio further developing our full solutions model, with a focus on the residential single and multi-family housing markets, hotels and commercial high-rises, and big box retail.
“Consistent with previous acquisitions, we will support Topline 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.”
The acquisition of Topline includes the acquisition of accounts receivable, inventory, machinery and equipment, and prepaid expenses. Patrick will continue to operate Topline on a stand-alone basis under its brand name in its existing facilities.
Patrick recorded net sales of $2.3 billion and operating income of $178.4 million in 2018.The company’s RV business represented 68% of sales, with marine-related trade and manufactured housing each making up 12%.
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