Elkhart, Indiana-based LCI Industries announced that its wholly-owned subsidiary, Lippert Components, Inc. (LCI) 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.
Lipper LCI is a supplier of a broad array of highly engineered components for the leading OEMs in the recreation and transportation product markets, and the related aftermarkets of those industries.
“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. Culturally, CURT is a strong fit, with a deep focus on delivering innovative products and an unwavering commitment to quality and superior customer service. Its highly complementary portfolio, combined with its strong brands and extensive distribution network, will significantly expand our addressable 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,” said Jason Lippert, CEO and President of LCI.
CURT, headquartered in Eau Claire, Wisconsin, maintains a robust product portfolio comprised of thousands of SKUs across various product lines, including hitches, towing electricals, ball mounts, and cargo management. CURT boasts a significant market position, owning and operating a stable of leading brands, including CURT, Aries, Luverne, Retrac, and UWS.
Leveraging a multi-channel model, CURT serves customers across e-commerce, direct-to-installer, and distribution channels. In addition, CURT has a wide distribution network, with centers strategically located throughout the U.S. to serve its North American customers. For the 12-month period ended September 30, 2019, CURT delivered approximately $255 million of revenue.
“With its proven track record of building high-quality products and successfully sourcing and integrating companies, LCI is an ideal partner for us. Both LCI and CURT have strong reputa tions and positions fostered through a culture of innovation, history of high-quality products, customer satisfaction and retention, and manufacturing excellence. We look forward to joining the team and further positioning the business for long-term success,” said Rock Lambert, CEO of CURT Group.
Faegre Baker Daniels LLP is serving as LCI’s legal advisor on the transaction.