---
title: "Patrick Industries to Buy LCI in an All-Stock RV-Parts Merger"
description: "Patrick Industries and LCI Industries agreed to combine in an all-stock deal, joining two of the biggest suppliers of parts to the recreational-vehicle, marine and manufactured-housing industries. The merged firm would have about $8 billion in revenue and target $150 million in cost savings — and give the RV supply chain a dominant new player."
category: "Companies"
category_url: https://boursel.com/category/companies
author: "Sofia Marchetti"
published: 2026-06-30T11:44:20.000Z
updated: 2026-06-30T11:44:20.000Z
canonical: https://boursel.com/article/patrick-industries-to-buy-lci-in-an-all-stock-rv-parts-merger
tags: ["patrick-industries", "lci-industries", "m-and-a", "rv", "companies"]
---
# Patrick Industries to Buy LCI in an All-Stock RV-Parts Merger

Patrick Industries and LCI Industries agreed to combine in an all-stock deal, joining two of the biggest suppliers of parts to the recreational-vehicle, marine and manufactured-housing industries. The merged firm would have about $8 billion in revenue and target $150 million in cost savings — and give the RV supply chain a dominant new player.

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](https://www.businesswire.com/news/home/20260630034219/en/Patrick-Industries-and-LCI-Industries-to-Combine-in-All-Stock-Merger-Creating-a-Premier-Platform-Serving-Global-Outdoor-Enthusiast-Housing-and-Other-Markets). 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.

## Sources

- [Patrick Industries and LCI Industries to combine in all-stock merger](https://www.businesswire.com/news/home/20260630034219/en/Patrick-Industries-and-LCI-Industries-to-Combine-in-All-Stock-Merger-Creating-a-Premier-Platform-Serving-Global-Outdoor-Enthusiast-Housing-and-Other-Markets)
- [Patrick Industries to acquire LCI Industries in all-stock deal](https://seekingalpha.com/news/4608364-patrick-industries-to-acquire-lci-industries-in-all-stock-deal)