Wells Fargo Upsizes Patrick Industries Facility to $450MM
Patrick Industries completed the acquisition of the business and certain assets of Medallion Plastic and expanded the size and extended the maturity date of its existing credit facility with Wells Fargo as administrative agent.
Elkhart, IN-based Medallion Plastic is a designer, engineer and manufacturer of custom thermoformed products and components which include dash and trim panels and fender skirts for the RV market, and complete interior packages, bumper covers, hoods and trims for the automotive, specialty transportation and other industrial markets.
“Medallion is recognized as a high quality designer and manufacturer of a wide array of innovative custom thermoformed plastic components and its flexible manufacturing process allows it to produce virtually any thermoformed component to meet its customers’ needs,” said Todd Cleveland, CEO of Patrick. “This acquisition represents a continued growth opportunity in combination with Patrick’s current thermoforming portfolio of companies and will allow us to capitalize on product synergies in adjacent markets.”
The acquisition of Medallion included the acquisition of accounts receivable, inventory, prepaid expenses and machinery and equipment. It 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.
Separately, the company entered into a third amendment to its credit agreement, dated March 17, 2017, to expand its credit facility to $450 million from $360 million and the maturity date for the credit facility was extended to March 17, 2022 from April 28, 2020. Wells Fargo is administrative agent for the facility.
“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,” said Nemeth.
Patrick Industries is a manufacturer of component products and distributor of building products serving the recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture.
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