We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Patrick (PATK) Buys Synergy RV, Boosts RV Transport Platform
Read MoreHide Full Article
Patrick Industries, Inc. (PATK - Free Report) has acquired Synergy RV Transport, a Goshen, IN-based transportation and logistics service provider, mainly for original equipment manufacturers (OEMs) as well as dealers in the recreational vehicle market. However, financial terms of the deal are not yet disclosed.
Buyout Synergies
Synergy has a diverse customer base, which includes manufacturers and dealers ranging from nationally known brands to growing mid-size businesses. It utilizes independently contracted drivers to haul towable/flatbed and motorized RVs from RV OEM plants to dealer lots throughout the continental United States.
This buyout is an attractive growth opportunity for Patrick that will enable the company to expand the RV transport platform and network.
The acquisition includes working capital, machinery, equipment and real estate. Patrick will continue to operate Synergy on a stand-alone basis under its brand name in the existing facilities and transport yards.
Synergy's 2019 revenues were $46 million. Patrick expects the acquisition to be immediately accretive to net income per share.
Inorganic Moves to Drive Growth
To complement or expand the existing businesses, Patrick focuses on driving growth in each of its primary markets through the acquisition of companies that are a strategic fit for core businesses, additional product lines, facilities, or other assets.
The company did not make any acquisitions in second-quarter 2020 but completed three buyouts in the first six months of 2020. It acquired Maple City Woodworking Corporation, a Goshen, IN-based manufacturer of hardwood cabinet doors and fascia for the recreational vehicle market. It also acquired SEI Manufacturing, Inc., a Cromwell, IN-based manufacturer of towers, T-Tops,hardtops, rails, gates and other aluminum exterior products for the marine market.
However, the RV industry experienced a five-week production shutdown due to the COVID-19 outbreak, while various marine OEMs had production shutdowns ranging from one to five weeks. Resultantly, Patrick’s second-quarter performance was hurt by business disruption in its end markets related to the COVID-19 pandemic.
Nonetheless, the company witnessed higher demand during the latter half of the second quarter in the RV and marine segments. MH markets benefited from an increase in interest from new consumers, in addition to those already in the retail pipeline. The company expects this momentum to continue in the second half of 2020.
Notably, shares of this Zacks Rank #1 (Strong Buy) company have gained 64.6% in the past year, outperforming the industry’s 31.1% rally. With increased visibility in four primary end markets, the company believes that it will have opportunities to invest strategically in acquisitions and the existing businesses to support the growth of OEM customers.
Owens Corning’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 63.8%.
Installed Building Products’ earnings for the current year are expected to grow 9.7% year over year.
Aegion’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 91%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Patrick (PATK) Buys Synergy RV, Boosts RV Transport Platform
Patrick Industries, Inc. (PATK - Free Report) has acquired Synergy RV Transport, a Goshen, IN-based transportation and logistics service provider, mainly for original equipment manufacturers (OEMs) as well as dealers in the recreational vehicle market. However, financial terms of the deal are not yet disclosed.
Buyout Synergies
Synergy has a diverse customer base, which includes manufacturers and dealers ranging from nationally known brands to growing mid-size businesses. It utilizes independently contracted drivers to haul towable/flatbed and motorized RVs from RV OEM plants to dealer lots throughout the continental United States.
This buyout is an attractive growth opportunity for Patrick that will enable the company to expand the RV transport platform and network.
The acquisition includes working capital, machinery, equipment and real estate. Patrick will continue to operate Synergy on a stand-alone basis under its brand name in the existing facilities and transport yards.
Synergy's 2019 revenues were $46 million. Patrick expects the acquisition to be immediately accretive to net income per share.
Inorganic Moves to Drive Growth
To complement or expand the existing businesses, Patrick focuses on driving growth in each of its primary markets through the acquisition of companies that are a strategic fit for core businesses, additional product lines, facilities, or other assets.
The company did not make any acquisitions in second-quarter 2020 but completed three buyouts in the first six months of 2020. It acquired Maple City Woodworking Corporation, a Goshen, IN-based manufacturer of hardwood cabinet doors and fascia for the recreational vehicle market. It also acquired SEI Manufacturing, Inc., a Cromwell, IN-based manufacturer of towers, T-Tops,hardtops, rails, gates and other aluminum exterior products for the marine market.
However, the RV industry experienced a five-week production shutdown due to the COVID-19 outbreak, while various marine OEMs had production shutdowns ranging from one to five weeks. Resultantly, Patrick’s second-quarter performance was hurt by business disruption in its end markets related to the COVID-19 pandemic.
Nonetheless, the company witnessed higher demand during the latter half of the second quarter in the RV and marine segments. MH markets benefited from an increase in interest from new consumers, in addition to those already in the retail pipeline. The company expects this momentum to continue in the second half of 2020.
Notably, shares of this Zacks Rank #1 (Strong Buy) company have gained 64.6% in the past year, outperforming the industry’s 31.1% rally. With increased visibility in four primary end markets, the company believes that it will have opportunities to invest strategically in acquisitions and the existing businesses to support the growth of OEM customers.
Other Key Picks
Other top-ranked stocks in the same space include Owens Corning Inc. (OC - Free Report) , Installed Building Products Inc. (IBP - Free Report) and Aegion Corporation , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Owens Corning’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 63.8%.
Installed Building Products’ earnings for the current year are expected to grow 9.7% year over year.
Aegion’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 91%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>