Monomoy Capital Partners made an unsolicited cash bid to buy LCI Industries last week. But LCI's board of directors already rejected the proposal to buy the Elkhart-based company.
Monomoy's cash offer was for $101 per share, but the board of directors determined the offer wasn't better than one already being hashed out with Patrick Industries. The board said Monomoy undervalued LCI, which they estimated at $150 per share.
Monomoy Capital Partners, a private investment firm, works with middle-market companies to advance operational and strategic goals. They acquire family-owned business, along with separating corporate business units or making public companies private. Most recently Monomoy invested in Creedence Energy Services.
LCI already announced a deal in July that would merge it with Patrick Industries. Both companies based in Elkhart sell and distribute parts and products for recreational vehicles. Officials reinforced that the Patrick Industries deal, an all-stock merger, is the best for the company and its shareholders.
Patrick shareholders would own about 52% of the combined company. LCI shareholders would receive 1.24 shares of Patrick common stock for each share of LCI common stock. The deal is expected to close by mid-summer 2027.
Patrick Industries and LCI Industries both confirmed April 17 that the companies were talking about a possible merger. A Nov. 3 announcement confirmed the transaction is moving forward.
“Our shareholders will benefit from ownership in a more diversified company with the financial and operational strength to grow revenues and deliver outstanding value to shareholders and other stakeholders,” said Johnny Sirpilla, interim chief executive officer of Lippert, in a press release. “As two complementary businesses with strong legacies deeply rooted in Elkhart and our other local communities, we understand the potential and positive impact this combination can deliver.”
A special meeting Nov. 18 will give shareholders the opportunity to reinforce their support for the Patrick merger.
