Lippert Acquires Girard Systems and Girard Products LLC

Rhea-AI Summary

LCI Industries has acquired substantially all business assets of Girard Systems and Girard Products LLC, specialists in awnings and tankless water heaters for the RV industry. This acquisition enhances Lippert's product portfolio, particularly in the motorized segment of the RV market. Girard's established reputation and customer service align well with Lippert's growth strategy. The transaction is pivotal for expanding distribution channels and product offerings, positioning Lippert for increased revenue and market leadership.

Positive

• Acquisition enhances product portfolio in the RV industry.
• Girard's strong brand loyalty and service reputation align well with Lippert's values.
• Potential for revenue growth by expanding Girard's products into new customer channels.
• Strengthens Lippert's position in the higher-end motorized RV segment.

Negative

• Integration challenges may arise, affecting operational efficiencies.
• Transaction could involve unexpected costs or liabilities.
• Risks related to potential lower-than-expected revenue post-acquisition.

ELKHART, Ind.--(BUSINESS WIRE)-- LCI Industries (NYSE: LCII) (the “Company”) which, through its wholly-owned subsidiary, Lippert Components, Inc. (“Lippert”), supplies, domestically and internationally, a broad array of highly engineered components for the leading original equipment manufacturers (“OEMs”) in the recreation and transportation product markets, and the related aftermarkets of those industries, today announced that its subsidiary, Lippert Components Manufacturing, Inc., has acquired substantially all of the business assets of Girard Systems and Girard Products LLC (collectively, “Girard”), a manufacturer and distributor of proprietary awnings and tankless water heaters for OEMs and aftermarket customers in the recreational vehicle, specialty vehicle, and related industries.

Girard, a supplier of awnings and tankless water heaters, has served the RV industry since 1995 and is recognized for high quality and exceptional service. Having created a significant niche in the motorized segment of the market, Girard’s patented awnings are featured on many of the premier Class A motorized units. Girard’s strategically-placed locations in Alabama, California, and Indiana make it well-positioned to serve customers across the U.S. as it continues to grow.

“We are very excited to welcome the Girard team to the Lippert family. We have admired how Girard’s business has evolved over the years, focusing on a strong commitment to excellent customer service and creating strong brand loyalty among its key consumers. Girard product lines fall nicely into Lippert’s core products and manufacturing competencies. Our sales and operations teams have big plans to take Girard’s designs and products and expand them into broader customer channels. Girard’s sophisticated product offerings for shade and appliances substantially broaden our product portfolio across all classes of RVs, enabling us to drive new content growth and further extend our leadership position in the outdoor recreation space,” said Jason Lippert, President and CEO of Lippert.

“The addition of Girard will allow us to provide a wider range of exceptional products to our customers, especially in the higher-end motorized segment of the RV Industry,” said Ryan Smith, Group President of Lippert - North America. “Girard’s great product lines will further bolster our service offerings in categories that we’re already strong in, perfectly aligning with our focus on enhancing the customer experience. We look forward to incorporating the deep industry and product knowledge that Girard will bring to the Lippert family as we work together to execute on our growth strategy.”

“Through the last 27 years, we have worked to deliver high-quality products to consumers, paying particular attention to service and building lasting customer relationships. With similar values, along with its leading industry position and manufacturing expertise, Lippert is a great partner to carry our legacy forward. The entire Girard team is excited to join Lippert and begin working to further position the business for long-term growth,” said Marcia Girard, CEO of Girard.

About LCI Industries

LCI Industries, through its wholly-owned subsidiary, Lippert, manufactures and supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation product markets, consisting primarily of recreational vehicles and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers. Lippert's products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; and other accessories. Additional information about Lippert and its products can be found at www.lippert.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements" with respect to integration of the businesses, expected growth, including in sales, development and pipeline, following the transaction, and the expected impact of the transaction on the Company’s operations, markets, prospects, strategies, synergies and efficiencies, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements are necessarily estimates reflecting the best judgment of the Company’s senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, (i) the transaction may involve unexpected costs or liabilities; (ii) the Company may be unable to achieve expected synergies and operating efficiencies from the transaction within the expected time frames or at all; (iii) the Company may be unable to successfully integrate Girard’s operations into its own, or such integration may be more difficult, time consuming or costly than expected; (iv) following the transaction, revenues may be lower than expected, and operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected;(v) the Company may be adversely affected by other economic, business, and/or competitive factors; (vi) risks that the transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the transaction; and (vii) the risks described from time to time in the Company’s reports filed with the Securities and Exchange Commission under the heading “Risk Factors,” including the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in the Company’s subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005831/en/

Brian M. Hall, CFO

(574) 535-1125

LCII@lci1.com

Source: LCI Industries

FAQ

What is the significance of LCI Industries acquiring Girard Systems?

The acquisition allows LCI Industries to expand its product offerings and strengthen its position in the RV market, particularly in higher-end motorized units.

When was the acquisition of Girard Systems announced?

The acquisition was announced in a press release dated October 2023.

How does the Girard acquisition impact LCI Industries' growth strategy?

The acquisition enhances LCI's product portfolio and is expected to drive revenue growth by expanding distribution channels and product offerings.

What challenges might LCI Industries face after acquiring Girard Systems?

LCI may encounter integration difficulties, unexpected costs, and potential revenue fluctuations following the acquisition.

What products does Girard Systems specialize in?

Girard Systems specializes in awnings and tankless water heaters for the RV industry.