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ELKHART, Ind. - LCI Industries (NYSE: LCII), a $1.97 billion market cap company currently trading below its InvestingPro Fair Value, through its subsidiary Lippert Components, Inc., has acquired the business assets of Freedman Seating Company, an Illinois-based manufacturer of transportation seating solutions. This acquisition, announced today, marks Lippert’s further expansion into the transportation market, building upon its $3.74 billion in annual revenue.
Freedman Seating Company, with a history dating back to 1894, specializes in seating for various transportation sectors, including buses, rail, and commercial vehicles. The company has been family-owned for over a century and is recognized for its contributions to the transportation industry. Post-acquisition, Freedman will continue its operations in Chicago, maintaining its commitment to the local workforce and community partnerships. According to InvestingPro data, LCI Industries maintains strong financial health with a current ratio of 2.82, indicating robust operational capability for such strategic expansions.
The acquisition complements Lippert’s existing transportation offerings, which include window and glass solutions, and follows its recent purchase of Trans Air, a manufacturer of climate control systems for commercial buses. The move is part of Lippert’s strategy to diversify its product range in the transportation vehicle markets.
Ryan Smith, Group President of Lippert’s North American OEM Operations, expressed enthusiasm about the merger, highlighting the combined 200 years of family leadership between the two companies. He anticipates that Freedman’s seating line will enhance Lippert’s portfolio and customer experience within the industry.
Andrew Pocock, Lippert’s EVP of Building and Transportation Products, also looks forward to providing an improved customer experience through the integrated product offerings. Craig Freedman, CEO of Freedman Seating, views the acquisition as an opportunity to grow and invest in their team while continuing their legacy.
LCI Industries, known for supplying engineered components to outdoor recreation and transportation markets, believes that its innovative culture and manufacturing capabilities position Lippert as a reliable partner for OEM and aftermarket customers.
This press release includes forward-looking statements regarding the integration of the businesses and expected growth. These statements are based on management’s estimates and involve risks and uncertainties that could cause actual results to differ materially from those anticipated. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of LCI Industries, including its impressive 5.89% dividend yield and 8-year consecutive dividend growth streak, among 10+ additional ProTips available to subscribers.
The information reported here is based on a press release statement and reflects the latest strategic moves by LCI Industries in the transportation seating market.
In other recent news, LCI Industries announced its financial results for the fourth quarter, providing essential insights into its performance in the motor vehicle parts and accessories sector. The company disclosed these details in a recent SEC filing, which includes a transcript of the earnings call. Investors and analysts often examine these filings to gauge the company’s financial health and strategic direction. Additionally, LCI Industries revealed plans for a $400 million convertible senior note offering due in 2030, aimed at qualified institutional buyers. The proceeds from this offering, along with existing cash, are intended to repurchase a portion of its 1.125% convertible senior notes due 2026 and up to $50 million of its common stock. Concurrently, the company is proposing a senior secured Term Loan B of $400 million due 2032 and a $600 million revolving credit facility maturing in 2030. These financial maneuvers underscore LCI Industries’ strategic efforts to manage its debt and enhance its financial flexibility. Furthermore, the company has emphasized that there is no assurance the proposed transactions will be completed as planned.
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