Lippert to acquire CURT Group

ELKHART — LCI Industries announced Friday that its wholly-owned subsidiary, Lippert Components Inc., has entered into a definitive agreement to acquire CURT Group, a leading manufacturer and distributor of branded towing products and truck accessories for the aftermarket, for approximately $340 million.

The transaction is expected to close before the end of 2019, subject to customary closing conditions, including regulatory approval.

“With a strong reputation for product innovation, engineering, and brand excellence, we look forward to welcoming CURT President Rock Lambert and his team to the LCI family,” said Jason Lippert, CEO and president of LCI. “Culturally, CURT is a strong fit, with a deep focus on delivering innovative products and an unwavering commitment to quality and superior customer service.

Lippert said CURT’s complementary portfolio, combined with its strong brands and extensive distribution network, will significantly expand LCI’s market.

“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,” he said. 

Headquartered in Eau Claire, Wisconsin, CURT maintains various product lines, including hitches, towing electricals, ball mounts and cargo management. It owns and operates a number of leading brands, including CURT, Aries, Luverne, Retrac and UWS. CURT has a wide distribution network to serve its North American customers and operates e-commerce, direct-to-installer and distribution channels.

For the 12-month period ended Sept. 30, CURT had revenue of about $255 million.

“With its proven track record of building high-quality products and successfully sourcing and integrating companies, LCI is an ideal partner for us,” said Rock Lambert, CEO of CURT Group. “Both LCI and CURT have strong reputations and positions fostered through a culture of innovation, history of high-quality products, customer satisfaction and retention, and manufacturing excellence.”

TRANSACTION HIGHLIGHTS

n Advances LCI’s diversification efforts, doubling the size of the aftermarket business, adding a highly complementary portfolio of prominent towing and truck products

n Enhances growth profile of the aftermarket business, as well as adding a large, installed customer base

n Leverages robust distribution network, innovative product technologies, and advanced engineering and R&D capabilities

n Anticipated to be immediately accretive to growth, profit margins, and earnings per share in FY20, excluding the impact of purchase accounting and acquisition costs

Source: LCI Industries 

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