Patrick Industries reaffirmed its planned merger with LCI Industries on Oct. 28 as LCI’s board reviewed a $101-per-share cash proposal that offers shareholders an alternative to the stock deal.
Monomoy Capital Partners made the unsolicited, nonbinding proposal, LCI said. The board is assessing it with independent financial and legal advisers, and LCI has kept its recommendation in favor of the Patrick merger. LCI advised shareholders to take no action regarding Monomoy’s proposal at this time.
The merger agreement, signed June 30, calls for each eligible LCI share to convert into 1.2440 Patrick shares, with cash paid for any fractional share. The agreement estimates that existing Patrick shareholders would own about 52% of the combined company after closing, with LCI shareholders holding about 48%. The Monomoy proposal would provide cash if completed; it is nonbinding.
Patrick and LCI have said the combined company would serve the outdoor recreation, housing and transportation markets. They estimate annual run-rate synergies of more than $150 million. The merger remains subject to shareholder approval and regulatory conditions.
Both companies received a second request for information from the U.S. Department of Justice (DOJ) Antitrust Division on Oct. 9, according to their joint proxy statement. The filing says a 30-calendar-day waiting period begins after both companies substantially comply, unless it ends sooner or is extended.
LCI’s virtual special shareholder meeting is scheduled for Nov. 18 at 9 a.m. ET, followed by Patrick’s meeting at 10 a.m. ET. LCI said it would update shareholders about Monomoy’s proposal in due course but gave no date for another update.
