Patrick Industries, a component provider for outdoor enthusiasts, announced it has signed a definitive agreement to acquire Sportech, LLC for approximately $315 million. The transaction is expected to close on or before January 24, 2024, and is subject to customary closing conditions and regulatory approval.
Sportech, based in Elk River, Minnesota, is a leading designer and manufacturer of component solutions to powersports OEMs, adjacent market OEMs, and the aftermarket, including integrated door systems, roofs, canopies, bumpers, windshields, fender flares, and cowls.
With a focus on supplying premium components to the powersports industry, particularly the attractive UTV segment of the market, Sportech recorded an estimated revenue of approximately $255 million in FY23, resulting in a five-year compound annual growth rate of 17 percent.
“We are delighted to welcome Sportech’s CEO, Jim Glomstad, and the entire Sportech team to the Patrick family,” Andy Nemeth, CEO of Patrick, comments. “Sportech’s long history of passion-driven innovation, profitable growth, and excellent customer service, along with its strong culture, is a great fit with our Outdoor Enthusiast vision and brand-forward go-to-market strategy.”
Nemeth continues: “Sportech provides meaningful scale as a supplier of key and synergistic solutions to powersports OEMs, many of which Patrick has established relationships with through our RV, marine, and existing powersports businesses. Sportech offers a solid platform for future organic and strategic growth within the powersports market, enabling us to continue to accelerate our momentum in the attractive Outdoor Enthusiast space, where we have industry-leading platforms in the RV and marine markets and see a clear pathway to revenue and cost synergies. We look forward to supporting the team as they continue to focus on what they do best.”
Jim Glomstad comments: “The team at Sportech and I are excited to join the Patrick family of incredible brands and leverage their foundation of resources and support as we continue to implement our strategy to ‘Discover, Design, Develop and Deliver’ for our valued customers. We are confident we can continue to build on our current relationships and expand the portfolio of products and solutions we offer in partnership with our OEM customers while increasing our market share and becoming a valued contributor to Patrick’s vision for its Outdoor Enthusiast ecosystem.”
The all-cash transaction will be funded with a combination of borrowings under the company’s existing credit facility and cash on hand. The transaction is expected to close on or before January 24, 2024.
Sportech designs, manufactures, and assembles cab components and systems for the powersports, golf and turf, industrial, and agricultural end markets. Sportech’s design and engineering capabilities allow the company to provide complex components and assemblies to its original equipment manufacturer customers.
Founded in 1959, Patrick is based in Elkhart, Indiana, employing approximately 10,000 team members throughout the United States.