By Connor Hart
Patrick Industries and LCI Industries have entered an agreement to combine in an all-stock merger, making for a tie-up between two recreational-vehicle component makers.
Under the agreement, LCI shareholders will receive about 1.24 shares of Patrick common stock for each share of LCI common stock they own, the companies said Tuesday.
Patrick shareholders will own roughly 52% of the combined company upon the transaction's completion, while LCI shareholders will own the remaining 48%.
Shares of LCI climbed 2.1%, to $102.20, in premarket trading, while shares of Patrick fell 7.0%, to $86.66.
The companies had previously discussed a merger. Patrick and LCI said in April that they were considering a deal, though talks ended the following month.
The new deal, which was unanimously approved by both boards and is expected to close in the first half of 2027, will bring together two companies with complementary product portfolios and longstanding partnerships with customers across both North America and Europe, Patrick and LCI said.
As a combined company, they will serve a diverse range of original-equipment manufacturers and consumers in the outdoor-enthusiast, housing and transportation markets, offering a broader portfolio of brands, as well as increasing efficiencies, research-and-development investment and commercialization capabilities.
The combined company is expected to report roughly $8.1 billion in annual revenue, as well as adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of about $1 billion, based on trailing 12-month results as of March, the companies said.
The combination is expected to deliver over $150 million of run-rate cost synergies within three years of closing, arising primarily from procurement, SG&A efficiencies, engineering best practices and improved supply-chain management, they added.
Patrick Chief Executive Andy Nemeth has been tapped to lead the combined company--the board of which will consist of 12 directors, with half designated by Patrick, and the other half named by LCI.
Write to Connor Hart at connor.hart@wsj.com