Two names most consumers have never heard of — but whose parts are inside millions of RVs — are joining forces. Patrick Industries and LCI Industries said on June 30 they will combine in an all-stock merger, according to the companies' announcement. It would create a dominant supplier to the recreational-vehicle and outdoor-recreation business.

The deal terms

The transaction is all stock — no cash changes hands, which preserves both companies' balance sheets. LCI shareholders would receive 1.2440 Patrick shares for each LCI share, leaving Patrick holders with roughly 52% of the combined company and LCI holders about 48%. On a combined, trailing-twelve-month basis the new firm would have around $8.1 billion in revenue, about $1 billion in adjusted earnings (EBITDA) including expected synergies, and roughly $508 million of free cash flow, the companies said. Both boards backed the deal unanimously; it's expected to close in the first half of 2027, subject to shareholder and regulatory approval.

Notably, the two had confirmed merger talks in April, then called them off in early May before reviving them — a sign the negotiations over terms (and the equity split) were hard-fought.

Who they are

Both are based in Elkhart, Indiana — the heart of America's RV industry — and both make the guts of recreational vehicles:

  • Patrick Industries supplies interiors, furniture, cabinetry and decorative components across RVs, marine, powersports and manufactured housing, operating 190-plus facilities.
  • LCI Industries, through its Lippert brand, makes the engineered, mechanical bits — chassis, axles, suspensions, slide-out and leveling systems, windows and hardware — across roughly 140 facilities.

Put together, one supplies much of what you sit on and look at inside an RV, the other much of what makes it roll and function — a remarkably complementary fit.

Why now

This is consolidation in a cyclical industry. RV demand boomed in 2020–21 as households took to the road, then slumped in 2022–23 as higher interest rates and a glut of used vehicles bit. With the market stabilizing, the logic is scale: combined purchasing power to push down input costs, fewer overlapping overheads, and shared engineering — the route to the targeted $150 million in annual savings. The all-stock structure also lets the pair combine without taking on debt, sensible in an industry whose sales swing with the economy.

The catch: concentration

Because Patrick and LCI sell to the same customers — RV makers, boat builders, housing producers — the merger concentrates a lot of the supply chain in one company. That raises two issues worth watching. For antitrust regulators, the overlap could draw scrutiny before the deal closes. And for RV manufacturers, fewer independent suppliers can mean less competition on price and terms — a concern for customers even as it benefits the merged firm's bargaining power.

Why it matters

For the RV and outdoor-recreation industry, this is a landmark: a single supplier with unusual sway over what goes into the vehicles, from frame to furniture. For investors in both companies, the deal is a bet that scale and $150 million of savings can smooth out a notoriously cyclical business — with the payoff hinging on smooth integration and on RV demand holding up. Boursel offers no view on either stock; the takeaway is that two quiet Elkhart giants are merging into one outsized force in the machinery of American leisure — and regulators, customers and rivals will all be watching how much power that concentrates.