Patrick Industries (PATK) investor relations material

Deal rationale and strategic fit

• The merger creates a premier platform serving outdoor recreation, housing, and transportation markets, leveraging complementary product portfolios and deep industry roots to enhance diversification and stability across cycles.

• The combination aims to deliver innovative, cost-effective solutions, expand R&D, and accelerate speed-to-market, improving the end-user experience.

• Expands aftermarket channel access and distribution networks, strengthening market reach and offsetting OEM production cyclicality.

• Both companies share a culture of innovation, operational excellence, and a commitment to community, culture, and stakeholder value creation.

• Diversifies end-market exposure, increasing resilience and growth opportunities.

Financial terms and conditions

• Structured as an all-stock merger, with Patrick shareholders owning 52% and LCI shareholders 48% of the combined entity; each LCI share will be exchanged for 1.2440 shares of Patrick common stock.

• Combined equity value is approximately $5.6 billion, with enterprise value over $7.7 billion at announcement.

• Pro forma revenue is $8.1 billion, adjusted EBITDA $1 billion, and free cash flow $508 million, inclusive of synergies.

• Net leverage is estimated at 2.1x, below Patrick's target range.

Synergies and expected cost savings

• Over $150 million in annual run-rate cost synergies are targeted within three years, primarily from procurement, G&A, facilities, and supply chain/logistics optimization.

• Synergy realization will begin promptly after closing, with full run rate achieved by year three; one-time cash costs to achieve are ~1x run-rate synergies.

• Synergies are expected to be accretive in the first year and will support more competitive pricing for customers.