Patrick Industries Seals $315M Deal For Sportech, Aiming High In Powersports And Aftermarket Sectors
Portfolio Pulse from Shivani Kumaresan
Patrick Industries Inc (NASDAQ:PATK) has agreed to acquire Sportech, LLC for approximately $315 million. Sportech, a designer and manufacturer for powersports OEMs and the aftermarket, is expected to bring in $255 million in revenue for FY 2023 with a 17% CAGR over five years. The acquisition is anticipated to be accretive to PATK's profit margins and EPS. The deal, expected to close by January 24, 2024, will be funded through existing credit facilities and cash on hand. Sportech will operate as a wholly owned subsidiary post-acquisition.
January 11, 2024 | 3:36 pm
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Patrick Industries' acquisition of Sportech for $315M is expected to be accretive to its profit margins and EPS, signaling potential positive short-term impact on PATK's stock price.
The acquisition of Sportech is significant for Patrick Industries, as it is expected to increase revenue and improve financial metrics such as profit margins and EPS. This positive outlook is likely to be well-received by investors, potentially leading to a short-term increase in PATK's stock price. The deal is also sizable in comparison to PATK's cash on hand, indicating a major strategic move.
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