At our recent meeting, we learned about a company few of us knew much about which is surprising since it is headquartered in Elkhart, Indiana, and they have experienced astonishing growth over the past several years. Patrick Industries has two main lines of businesses: Lifestyle & Leisure focusing on the RV and marine industries and Housing & Industrial focusing on manufactured housing and industrial building supplies.
Josh Boone, Vice President of Finance & CFO, walked us through the growth that Patrick Industries has experienced since 2007. While in the early years, Patrick Industries acquired a few companies. Between 2010 and 2017, they acquired 44 companies for an aggregated purchase price of $660 million with annualized revenues of $1 billion. These disciplined strategic acquisitions from all of their core market segments provides product expertise, differentiation, and optionality as well as expands their customer centric geographic product footprint and reach. Josh emphasized that Patrick’s capital allocation strategy is centered on the utilization of a balanced leverage position, strong cash flows and capital resources to grow and reinvest in the business model.
Given the amount of growth Patrick Industries has experienced over the past 7 to 10 years, hopefully, Josh will accept another invitation to speak to our membership in a couple of years; so we can learn how their growth philosophy has propelled the Company to new heights.
The meeting presentation can be downloaded here.