Patrick Industries and LCI Industries agree to all-stock merger

Patrick Industries (NASDAQ: PATK) and LCI Industries (NYSE: LCII) have entered into a definitive agreement to merge in an all-stock transaction, according to a joint press release from the two Elkhart, Indiana-based companies.

Under the terms of the deal, LCI shareholders will receive 1.2440 shares of Patrick common stock for each share of LCI common stock they hold. Upon closing, Patrick shareholders will own approximately 52% of the combined company, with LCI shareholders holding the remaining 48%.

The boards of directors of both companies unanimously approved the agreement. The transaction is expected to close in the first half of 2027, subject to shareholder approval from both companies, required regulatory clearances, and other customary closing conditions.

On a pro forma basis, the combined company's trailing twelve months results as of March 2026 would include approximately $8.1 billion in revenue, adjusted EBITDA of $1.0 billion inclusive of synergies, and free cash flow of $508 million inclusive of synergies. The companies project more than $150 million in run-rate cost synergies within three years of closing, arising from procurement, selling, general and administrative efficiencies, engineering practices, and supply chain management.

The combined company is expected to carry a pro forma net leverage ratio of 2.1x, with a target leverage range of 2.25x to 2.5x going forward.

Patrick Industries CEO Andy Nemeth will lead the combined company as chief executive officer. Patrick director Todd Cleveland will serve as board chair, and LCI interim CEO Johnny Sirpilla will serve as vice chair. The combined board will consist of 12 directors, six from each company.

The combined company will be headquartered in Elkhart, Indiana.

J.P. Morgan Securities and Baird are serving as financial advisors to Patrick Industries, with McDermott Will & Emery as legal counsel. Perella Weinberg Partners is advising LCI Industries, with Kirkland & Ellis serving as legal counsel.

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