Patrick Industries (NASDAQ:PATK) completed the acquisition of the business and certain assets of Medallion Plastics for ~$10M.
The Company expects the acquisition to be immediately accretive to net income per share.
The acquisition of Medallion included the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the Company's existing credit facility. Patrick will continue to operate the business on a stand-alone basis under the Medallion brand name in its four existing facilities.
The Company entered into a third amendment to its credit agreement, dated March 17, 2017, to expand its credit facility to $450M from $360M and extended maturity date to March 17, 2022 from April 28, 2020.
"We are very appreciative of the continued support and confidence shown by our banking partners. The increase in our credit facility capacity, coupled with our recent equity offering, provides us with a strong financial foundation to continue to execute on our long-term strategic growth plan and capital allocation strategy and drive both organic and acquisition-related growth initiatives," stated Mr. Nemeth.
Source: Press Release