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Patrick (PATK) Acquires Tumacs, Boosts Marine Products

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Patrick Industries, Inc. PATK has been on an expansion spree, which in turn is helping it enhance high-quality innovative product lines in its portfolio. In sync with this, the company acquired a leading manufacturer of custom designed boat covers, canvas frames and bimini tops — Tumacs Covers.

Pittsburgh, PA-based Tumacs mainly serves marine original equipment manufacturers or OEMs and dealers. Patrick provides component solutions for RV, marine, manufactured housing and various industrial markets. Hence, the Tumacs buyout is a strategic fit for Patrick’s full solutions business model in the marine OEM market and aftermarket. Tumacs, which will continue to operate under the Tumacs Covers brand name, has manufacturing facilities in Indiana and Pennsylvania along with a distribution/service center in Michigan.

Andy Nemeth, chief executive officer of Patrick said, “Tumacs' unique quick-turn prototyping and customization capabilities and extensive collection of boat cover applications exude their meticulous craftsmanship and dedication to product excellence.”

The Tumacs acquisition will be immediately accretive to earnings per share.

Expansion Through Acquisitions

Patrick has been actively involved in acquisitions to drive growth. The company completed three acquisitions in second-quarter 2021 and seven in the first six months of 2021. Acquisitions contributed $62.1 million to net sales for first-half 2021.

In April, Patrick acquired CDEC, including the latter’s industry-leading proprietary non-slip flooring to the marine OEM and aftermarket to the Patrick family of leading brands. In the same month, it also acquired Alpha Systems, whose world-class production facilities provide proprietary roofing adhesive and sealant products, the RV, OEM and aftermarket channels. Both the acquisitions further enhanced scale, increased the diversity of Patrick’s products and solutions, boosted aftermarket presence and expanded the depth of penetration in the leisure lifestyle markets.

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The company has been riding high on improving housing market prospects, accretive acquisitions and solid geographic-expansion efforts. Patrick’s shares have gained 43.8% in the past year, outperforming the Zacks Building Products - Mobile Homes and RV Builders industry and S&P 500’s 42.5% and 29.1% rally, respectively. The outperformance can also be attributed to its impressive surprise history, having surpassed the Zacks Consensus Estimate in the trailing seven quarters.

Zacks Rank & Other Key Picks

Patrick currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other top-ranked stocks in the broader Construction sector include Armstrong World Industries, Inc. AWI, Owens Corning Inc. OC and Simpson Manufacturing Company, Inc. SSD. While Armstrong World carries a Zacks Rank #1, the other two stocks hold a Zacks Rank #2 (Buy).

Armstrong World, Owens Corning and Simpson Manufacturing’s earnings for 2021 are expected to rise 16.3%, 68.1% and 28.6%, respectively.

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Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report

Owens Corning Inc (OC) : Free Stock Analysis Report

Simpson Manufacturing Company, Inc. (SSD) : Free Stock Analysis Report

Patrick Industries, Inc. (PATK) : Free Stock Analysis Report

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