Drew Acquires Indiana-Based Manufacturer of RV Components and Mobile Office Chassis

Drew Industries Incorporated DW today reported that its wholly-owned subsidiary, Lippert Components, acquired certain assets and business of M-Tec Corporation. The acquired business has annual sales of approximately $12 million, primarily of components for RVs and mobile office units. The purchase price of $6 million was paid from available cash. Depending on sales levels achieved by the acquired business over the next three years, the Company may pay an additional purchase price of approximately $0.6 million. Drew expects the acquisition to be immediately accretive to earnings. The primary manufacturing facilities of the acquired business are in northern Indiana. Lippert Components will lease these facilities for one year, during which time it will consolidate the new production into its existing facilities, substantially reducing the production costs of the acquired business. "Acquisitions like this have been a big factor in enabling Drew to continually expand," said Fred Zinn, Drew's President and CEO. "Further, we have the capability to reduce the cost structure of the acquired operations. As with the eight other acquisitions we have made during the past four years, we were able to complete this acquisition without incurring debt. With no debt, about $30 million in available cash, and an outstanding operating management team, we have the resources to continue to pursue expansion opportunities which we believe will yield favorable returns on our investments."