The Elkhart-based recreational vehicle parts maker, Lippert Components Manufacturing, Inc. has acquired the business and certain assets of Smoker Craft Inc.’s furniture making operation for $28 million.
New Paris-based Smoker Craft builds pontoon, fiberglass and aluminum boats. LCI said in a statement it expected first year revenue of the furniture business it acquired from Smoker Craft to be $35 million.
“We are thankful to our partners at Smoker Craft for entrusting us with their furniture operations,” Ryan Smith, LCI’s senior vice president of sales and operations, said in a statement. “Over the last four years, LCI has become one of the leading suppliers of marine furniture to the industry. We’ve grown to the size we have because of the foundation of trust we’ve built with our marine customer base, along with the steady flow of innovation that we’re pouring into the industry. I’m excited to add the Smoker Craft product to our seating catalog and I assure all of Smoker Craft’s customers that they are in good hands with LCI.”
The purchase price was covered from borrowings under LCI’s $325 million line of credit. The companies also entered into a long-term supply agreement as part of the deal, which Smoker Craft said was part of its long-range growth strategy.
“We feel very comfortable with the Lippert team and believe the cultures at Lippert and Smoker Craft are an ideal fit,” Doug Smoker, Smoker Craft’s president and CEO, said in the statement.
The move will free up manufacturing space, giving Smoker Craft the ability to concentrate on building boats.
“This is very similar to the furniture manufacturing operation that we purchased from Godfrey Marine in 2016, and that transition went extremely well,” Jason Lippert, LCI’s CEO, said in the statement.
This will be the company’s fourth marine furniture acquisition in the last four years and as LCI continues to grow in the marine industry, it will expect more opportunities continue to present themselves, he said.
“This line of business has grown so significantly that earlier this year we opened a 700,000 square foot facility in Fort Wayne, Indiana to serve our marine customers,” Lippert said. “We anticipate that the Smoker Craft furniture manufacturing business will remain in New Paris while we transition the operation into the LCI family.”
In addition to recreational vehicles, LCI makes parts for manufactured homes, modular housing, boats, buses, trains, trucks and trailers used to haul boats, livestock, equipment and other cargo.