Outdoor Industry Powerhouse
Patrick, LCI Industries Announce $7.7B Merger Targeting $150M in Synergies
Anonymous
Key Points
1
LCI CEO Jason Lippert will retire, a development that followed a previous pause in merger talks between the companies.
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Indiana industry context places LCI and Patrick as the 16th and 17th-largest public companies in Indiana, with about 11,500 (including ~7,500 in Indiana) and 10,000 employees (including ~4,500 in Indiana) respectively.
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The merged entity is expected to generate more than $8.1 billion in revenue and about $1.0 billion in adjusted EBITDA.
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The deal is described as leveraging a cross-border footprint across North America and Europe, combining complementary product portfolios and partnerships.
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A joint conference call and webcast to discuss the merger was scheduled for 8:30 a.m. Eastern time on the announcement day.
Patrick Industries and LCI Industries announced an all-stock merger on June 30, 2026, combining the two largest RV component suppliers in the U.S. into a single giant. The deal carries an enterprise value of about $7.7 billion and is expected to generate more than $8.1 billion in annual revenue, according to RV Business.
LCI shareholders will receive 1.2440 Patrick shares for every share they own. Patrick shareholders will hold roughly 52% of the new company, while LCI owners will hold about 48%, Yahoo Finance reported. The deal is targeted to close in the first half of 2027, pending shareholder and regulatory approvals.
How Jason Lippert's Exit Unlocked the Deal
Talks between the two companies nearly died just weeks ago. Patrick and LCI first confirmed merger discussions on April 17, 2026. But on May 4, both sides announced they were walking away, unable to agree on terms. Then, on June 4, LCI CEO Jason Lippert announced his retirement after 32 years — ending three generations of family leadership at the company.
Industry analysts say Lippert's departure cleared the path for Patrick to take the lead role in the combined company. Independent Director Johnny Sirpilla stepped in as LCI's interim CEO and will become Vice Chair of the merged board. Sirpilla, a former Camping World executive, played a key role in getting both sides back to the table, according to TipRanks.
Andy Nemeth to Lead a $8.1B Revenue Powerhouse
Patrick CEO Andy Nemeth will run the combined company. Todd Cleveland, Patrick's current chair, will serve as board chair. The 12-member board will be split evenly — six directors from each company. The merged entity will be headquartered in Elkhart, Indiana, long known as the RV capital of the world, Inside Indiana Business reported.
Nemeth described the deal as a chance to build a "more dynamic, innovative, solutions-oriented platform" for OEMs and consumers worldwide. The combined company is projected to produce about $1.0 billion in adjusted EBITDA. It will also carry a pro forma net leverage ratio of 2.1x, with a long-term target of 2.25x to 2.5x.
$150M in Synergies Planned, But 21,000 Jobs Hang in Balance
The companies expect to unlock roughly $150 million in run-rate synergies. Those savings will come from procurement, selling costs, general and administrative cuts, and shared engineering practices over about three years. Free cash flow for the combined company is projected at approximately $508 million once synergies are included, according to TipRanks.
Together, the two companies employ more than 21,000 people globally. About 12,000 of those jobs are in Indiana — making this the largest corporate event in Elkhart's history. LCI currently employs about 11,500 workers, including 7,500 in Indiana. Patrick employs around 10,000, with roughly 4,500 in the state, Inside Indiana Business noted. Local labor leaders have raised concerns about overlaps in manufacturing and office roles.
Antitrust Scrutiny Looms Over RV Supply Chain Dominance
The merger faces a real regulatory hurdle. Back on April 21, Senator Mike Lee — chair of the Senate Judiciary Subcommittee on Antitrust — sent a formal letter to both CEOs. He warned that combining the two biggest RV suppliers could choke competition across the entire supply chain. Together, the companies supply key parts like chassis, windows, and furniture to nearly every major RV maker in North America.
On the market side, LCI shares jumped 8-9% in pre-market trading after the announcement. Patrick shares dipped about 2% as investors weighed the cost of issuing new stock. Some analysts at TipRanks called the dilution impact on Patrick shareholders significant, even while praising the deal's long-term logic. Both boards approved the merger unanimously, and the companies plan to expand further into European markets where LCI already has a strong presence in the caravan and marine sectors.
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