LCI Industries (LCII) M&A announcement summary

Deal rationale and strategic fit

• The merger creates a premier engineering and component solutions platform for outdoor enthusiast, housing, transportation, and adjacent markets, leveraging complementary product portfolios and deep industry roots.

• Expands aftermarket channel access and distribution networks, strengthening market reach and improving revenue growth and margin profile.

• Diversifies end-market exposure, increasing resilience, growth opportunities, and stability across industry cycles.

• Shared culture of innovation, operational excellence, and commitment to community and customer service aims to deliver enhanced consumer experiences and support next-generation outdoor enthusiasts.

• Enhances ability to deliver integrated, customer-focused solutions and co-innovation across OEM and consumer markets in North America and Europe.

Financial terms and conditions

• Structured as an all-stock merger, with Patrick shareholders owning 52% and LCI shareholders 48% of the combined company.

• Each LCI share will be exchanged for 1.2440 shares of Patrick common stock.

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

• Pro forma revenue of $8.1 billion+ and adjusted EBITDA of $1.0 billion, with $508 million pro forma free cash flow.

• Expected pro forma net leverage ratio of 2.1x, below target range.

Synergies and expected cost savings

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

• Synergy realization expected to begin promptly after closing, with full run rate achieved by year three.

• One-time cash costs to achieve synergies are about 1x run-rate synergies.

• Transaction expected to be accretive to adjusted EPS in Year 1.

• Synergies will enable more competitive pricing and enhanced value for customers.