Lippert Acquires the Assets of CWDS, LLC

Rhea-AI Summary

LCI Industries, under its subsidiary Lippert Components, Inc., has acquired the furniture business assets of CWDS, , a Camping World subsidiary. This strategic move aims to enhance Lippert's furniture portfolio for RV and marine OEM and aftermarket customers, creating immediate synergies and improving the overall customer experience.

Positive

• The acquisition expands Lippert's furniture offerings, allowing it to provide a wider range of products to RV and marine customers.

• Expected immediate synergies from the acquisition will enable Lippert to enhance its RV interior solutions for both OEM and aftermarket segments.

• Partnership with Camping World will help position Lippert's products in Camping World retail stores and online marketplaces, enhancing visibility and sales opportunities.

Negative

• Potential challenges in integrating the acquired assets into Lippert's existing operations may arise, impacting operational efficiency and profitability.

• Market response to the acquisition and any unexpected developments could affect LCI Industries' stock price and investor sentiment.

Mergers & Acquisitions Analyst

Lippert's acquisition of CWDS, LLC's furniture business assets marks a strategic move to bolster its already strong foothold in the RV and marine furniture market. This deal not only diversifies Lippert's existing product line but also provides an avenue for potential cost savings through operational synergies. With a history of successful integration in the RV segment since 2009, Lippert's management has proven adept at leveraging acquisitions for growth. The collaboration with Camping World, given its extensive dealership network, may increase market penetration for Lippert’s products, potentially improving same-store sales and customer retention. However, investors should monitor how Lippert manages integration costs and whether the expected synergies materialize within the forecasted timeline. Additionally, the degree to which this acquisition can contribute to Lippert's revenue stream remains to be seen, as much would depend on consumer spending trends in the RV and marine segments.

Market Research Analyst

The strategic alliance between Lippert and Camping World is poised to enhance the consumer experience and offer a more cohesive shopping and service encounter. This could lead to a strengthened brand loyalty among the existing customer base and attract new customers seeking a comprehensive RV and marine purchasing experience. Lippert's capacity to innovate could be accelerated by direct access to consumer feedback through Camping World's retail channels. By anticipating and acting upon evolving consumer preferences, Lippert might secure a competitive advantage in the RV and marine markets. However, this optimistic outlook should be tempered with an understanding of the cyclical nature of consumer discretionary spending, which could impact the success of the partnership, especially in economic downturns.

Retail Industry Analyst

The announcement specifies enhanced positioning for Lippert’s products within Camping World's retail stores, which suggests that Lippert may gain a more prominent shelf presence and potentially better sales terms. The intended improvements to Camping World’s online marketplaces could also translate into increased online sales, a vital channel in today’s retail landscape. One should note the importance of e-commerce strategies and their growth potential, especially in niche markets such as RV and marine equipment. Lippert's focus on technical expertise and innovation, complemented by Camping World’s retail and service facilities, might elevate the standard in RV installations and repairs, potentially capturing a larger share of this lucrative service market.

ELKHART, Ind.--(BUSINESS WIRE)-- LCI Industries (NYSE: LCII) through its wholly-owned subsidiary, Lippert Components, Inc. (“Lippert” or the “Company”), a supplier of a broad array of highly engineered components for the leading original equipment manufacturers (“OEMs”) in the recreational vehicle and marine product markets, and the related aftermarkets of those industries, today announced that its subsidiary, Lippert Components Manufacturing, Inc., has acquired substantially all of the furniture business assets of CWDS, LLC, a subsidiary of Camping World Holdings, Inc. (“Camping World”), effective May 3, 2024. This strategic acquisition expands Lippert’s furniture portfolio, allowing it to continue its mission of offering a comprehensive selection of products to RV and marine OEM and aftermarket customers. Lippert expects the transaction to improve the customer experience through enhanced product offerings and innovative solutions in the RV and marine industries.

Lippert first entered the RV interiors segment in 2009 and over the past 15 years has grown to be the leading supplier of furniture to the RV industry. This acquisition is expected to create immediate synergies and enable Lippert to continue to provide quality RV interior solutions to both the OEM and Aftermarket segments.

Lippert, as a Camping World premier vendor, will have the opportunity to influence how its products are positioned within the Camping World retail stores. Additionally, Camping World and Lippert will work together to enhance selection on Camping World’s online marketplaces, campingworld.com and overtons.com, utilizing Lippert’s vast RV, automotive and marine product catalogs.

“We are very excited to bring the Lippert and Camping World partnership to new levels,” said Jason Lippert, President and CEO of Lippert. “While we have been key partners for years, both organizations feel strongly that there is more to do to improve the customer experience as suppliers and dealers. Our goal is to combine Lippert’s technical subject matter expertise, training, products, and innovation with Camping World’s vast network of dealerships to be the leading force in RV installations, enhancements and repairs.”

Marcus Lemonis, Chairman and CEO of Camping World commented, "We look forward to our expanded partnership as we collectively work toward further elevating the retail and service experience in our dealerships.”

About LCI Industries

LCI Industries, through its wholly-owned subsidiary, Lippert, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation markets, consisting primarily of recreational vehicles and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. Lippert's products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; and other accessories. Additional information about Lippert and its products can be found at www.lippert.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” including with respect to the expected synergies of the transaction and the expected impact of the transaction on the Company’s products, solutions, positioning, online presence, markets, prospects, strategies, efficiencies, customer experience and other matters. Statements in this press release that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements are necessarily estimates reflecting the best judgment of the Company’s senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include that the Company may be unable to achieve expected synergies and other expected benefits from the transaction within the expected time frames or at all, the transaction may involve unexpected costs or liabilities, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240507509322/en/

Contact: Lillian D. Etzkorn, CFO

Phone: (574) 535-1125

E Mail: LCII@lci1.com

Source: LCI Industries

FAQ

What did Lippert Components, Inc., a subsidiary of LCI Industries, acquire recently?

Lippert Components, Inc. acquired the furniture business assets of CWDS, , a Camping World subsidiary.

When did the acquisition of CWDS, assets by Lippert Components Manufacturing, Inc. take place?

The acquisition was effective on May 3, 2024.

How does Lippert expect the acquisition to benefit its customers?

Lippert anticipates the acquisition to improve customer experience through expanded product offerings and innovative solutions in the RV and marine industries.

What is the goal of the partnership between Lippert and Camping World?

The goal is to enhance the customer experience by combining technical expertise, training, products, and innovation to be the leading force in RV installations, enhancements, and repairs.

Who are the key figures involved in the partnership between Lippert and Camping World?

Jason Lippert, President and CEO of Lippert, and Marcus Lemonis, Chairman and CEO of Camping World, are key figures in the partnership.