Patrick Industries buys Structural Composites
Patrick Industries buys Ligonier manufacturer
Structural Composites makes fiberglass products for recreational vehicle, other markets
Posted: Tuesday, May 26, 2015 11:00 pm | Updated: 6:09 am, Wed May 27, 2015.
By Barry Rochford
LIGONIER — Structural Composites of Indiana Inc., which makes fiberglass front and end caps for recreational vehicles, and specialty fiberglass products at its two facilities in Ligonier’s industrial park, was sold to Patrick Industries Inc. for about $20 million, the companies announced Tuesday.
Structural Composites of Indiana, or SCI, will operate under Patrick Industries as a stand-alone business. It has more than 150 employees, said Operations Manager Scott Rasler.
“They are purchasing us to help us continue to grow,” Rasler said of Patrick Industries, which is headquartered in Elkhart.
The purchase follows Patrick Industries’ recent acquisitions of New Paris-based Better Way Partners LLC in February and Bremen-based Charleston Corp. in November 2014. Both businesses make fiberglass components for the RV market.
Patrick Industries spokeswoman Julie Ann Kotowski said the acquisition of SCI is “another fiberglass operation that will add to our current market share in that area.”
Founded by Ken Baranowski, SCI produces custom-molded fiberglass front and end caps, and roofs for RV makers. It also makes specialty fiberglass components for the transportation, marine and other industrial markets. It operates out of two facilities on Gerber Street in Ligonier.
“After my more than 40 years in the fiberglass business, SCI’s exceptional team and I are excited to partner with the Patrick organization, which shares our long-term vision to be a premier fiberglass manufacturer for the industries we serve, and whose strong focus on customer service, coupled with our operational expertise and attention to detail, will help further grow the SCI brand,” Baranowski said in news release issued by Patrick Industries.
“Patrick is a natural fit for our operation as we are poised for growth, and the additional manufacturing expertise and resources that Patrick brings can help propel SCI to the next level.”
Rasler said acquisition discussions between SCI and Patrick Industries lasted about a month. He said Baranowski has retired following the sale of the business.
“The acquisition of SCI, which is recognized in the RV industry as a premier high-quality manufacturer of large specialty fiberglass parts, is a great complement to our current fiberglass operations,” Todd Cleveland, president and CEO of Patrick Industries, said in the news release. “SCI has an excellent long-standing reputation for innovative, high-quality, low-defect designs, customized engineered fiberglass component, and customer service.
“In addition, the acquisition of SCI will further enhance our position as an industry-leading supplier in the fiberglass and fiberglass components market, and afford us the opportunity to become a larger supplier to the RV, marine and other industrial markets as we continue to execute on our long-term strategic growth initiatives,” Cleveland continued. “Consistent with our previous acquisitions, we will support SCI with the financial and operational foundation that will allow it to preserve the entrepreneurial spirit that has been so important to its success.”
Patrick Industries said the acquisition was funded via an existing credit facility. Founded in 1957, its stable of businesses makes products and materials for the RV, manufactured housing and industrial markets, and serves as an independent wholesale distributor for the manufactured housing and RV industries.
The company on April 30 reported first-quarter net sales of $223.4 million, an increase of $53.3 million, or 31.3 percent, from the year-ago period. It’s projecting 2015 revenue at SCI to be about $18 million.