The board of LCI Industries is asking shareholders to vote for the merger with Patrick Industries at a special meeting on 18 November 2026.
LCI supplies engineered components to manufacturers and aftermarket customers in the outdoor recreation and transport sectors through its Lippert subsidiary.
The board unanimously concluded that Monomoy Capital Partners’ unsolicited, non-binding proposal to buy LCI for $101 per share in cash, received last week, “did not constitute a superior proposal” and was not reasonably likely to lead to one.
The proposal comes after LCI entered into a definitive agreement on 30 June 2026 to combine with Patrick Industries in an all-stock merger. The proposed merger of LCI and Patrick would create a business supplying components to the outdoor enthusiast, housing and transportation markets.
As part of its review, the board looked at what LCI might be worth on its own. LCI and its advisers updated the company’s long-term plan to account for pressures in the recreational vehicle industry. Using that plan, they put the midpoint of LCI’s standalone valuation above $150 per share on a discounted cash flow basis.
The board also believes Monomoy’s offer is worth less than the stake LCI shareholders would hold in the combined company. LCI and Patrick expect the merger to generate about $150m in net annual cost savings once the measures are fully in place, which they expect within three years of completion. LCI shareholders would also share in any future growth of the combined business.
The companies still expect to complete the merger in the first half of 2027. The deal needs approval from both sets of shareholders and the relevant regulators. Other customary closing conditions also apply.
Perella Weinberg Partners LP is LCI’s financial adviser on the deal and Kirkland & Ellis LLP is its legal adviser.
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