Patrick and LCI agree all-stock merger

Patrick Industries and LCI Industries have entered into a definitive agreement to combine in an all-stock merger, subject to shareholder and regulatory approval.

Both companies are suppliers to the outdoor recreation industries.

The news comes after the two firms initially confirmed merger talks in April 2026, before saying they had ended those discussions in May.

In June 2026, LCI Industries confirmed the departure of president and CEO Jason Lippert, and appointed independent director Johnny Sirpilla as interim CEO.

Under the agreement, which has been unanimously approved by the boards of both companies, LCI shareholders will receive 1.2440 shares of Patrick common stock for each LCI common share they own.

Following completion of the transaction, Patrick shareholders are expected to own approximately 52 per cent of the combined company, with LCI shareholders owning the remaining 48 per cent.

The combined business will bring together the companies’ product portfolios serving the outdoor recreation, housing and transportation sectors across North America and Europe. Patrick’s design-to-delivery capabilities will be combined with Lippert’s structural OEM and aftermarket component business, with the enlarged company supplying OEMs and consumers through an expanded portfolio of brands.

According to the companies, the merger is intended to broaden research and development activity, expand commercial capabilities and improve operational efficiency.

Andy Nemeth, CEO of Patrick, says: “Today marks the beginning of an exciting new chapter in the evolution of our two companies as we continue on our journey to positively impact and deliver value for our customers, our team members, shareholders, and the communities we serve.

“We have long respected the Lippert team and their impressive, innovative capabilities across the solutions they deliver and are thrilled to reach this milestone. We have two highly successful, well-established organisations with long track records of strategic and organic growth, innovation, and customer service, supported by incredible talent across each enterprise, deep expertise, and a shared commitment to excellence. Together, we will create a premier partnership-oriented platform for the global outdoor enthusiast ecosystem, housing and transportation markets that is more resilient and better positioned to serve all of our customers – from OEMs to the end consumer.”

Johnny Sirpilla, interim chief executive officer of Lippert, adds: “This combination represents a defining moment for Lippert. Our shareholders will benefit from ownership in a more diversified company with the financial and operational strength to grow revenues and deliver outstanding value to shareholders and other stakeholders.

“As two complementary businesses with strong legacies deeply rooted in Elkhart and our other local communities, we understand the potential and positive impact this combination can deliver. Together, we can offer a broader, more innovative, competitive, and affordable portfolio of products and product solutions, as we work with our partners and customers in key segments to drive greater value for end consumers. We will also continue to invest in our growth and combined capabilities, creating new opportunities for team members and charting an exciting new future for the combined company.”

Financial outlook

The companies state that the merger will expand their combined presence across the recreational vehicle, marine, powersports, truck, adventure and off-road, transportation, automotive and housing sectors. The enlarged business will supply a wider range of interior, exterior, structural and mechanical systems to OEM and aftermarket customers.

On a pro forma basis, using the trailing 12-month period to March 2026, the combined company would have generated approximately $8.1bn in revenue, adjusted EBITDA of approximately $1.bn, including expected synergies, and free cash flow of $508m, also including expected synergies.

The companies expect the merger to generate more than $150m in annual run-rate cost synergies within three years of closing. These are expected to come primarily from procurement, selling, general and administrative efficiencies, engineering practices and supply chain management.

The combined company is expected to have pro forma net leverage of 2.1x. Its capital allocation strategy will focus on reinvesting operating cash flow while maintaining a net leverage target of between 2.25x and 2.5x. Planned priorities include strategic growth initiatives, automation-related capital expenditure, share repurchases and dividends.

Leadership and transaction timetable

Following completion of the transaction, Andy Nemeth will remain CEO of the combined company.

The board will consist of 12 directors, with six appointed by Patrick and six by Lippert. Patrick director Todd Cleveland will serve as chair of the board, while Lippert interim CEO and director Johnny Sirpilla will become vice chair.

The companies say they will use a collaborative process to appoint the executive management team and leaders for key business units.

The combined company will be headquartered in Elkhart, Indiana.

The transaction is expected to close during the first half of 2027, subject to approval by shareholders of both companies, regulatory approvals and other customary closing conditions.