Elk River-based Sportech, a big supplier to the powersports market, is being acquired for $315 million.
The deal with Patrick Industries, based in Elkhart, Ind., is expected to close by the end of the month.
Sportech Chief Executive Jim Glomstad and the company's roughly 430 employees are expected to transfer to Patrick.
"We are confident we can continue to build on our current relationships and expand the portfolio of products and solutions we offer in partnership with our OEM customers," Glomstad said in a news release.
Patrick Industries, which right now specializes in supplying the recreational vehicle industry, said the acquisition will allow it to expand its customer base.
"This acquisition helps Patrick to embed a leadership position as a supplier in the highly appealing and complementary powersports market," said Andy Nemeth, chief executive of Patrick, in a presentation to analysts Thursday.
Founded in 1993 to make windshields for snowmobiles, Sportech uses plastic thermoforming to make doors, windshields and other components for makers of all-terrain vehicles, motorcycles, snowmobiles and other off-road vehicles, as well as products to customize the vehicles.
Patrick Industries, a publicly traded company, is expected to lose ground in both sales and profits from 2022 because the RV and marine industries contracted last year. Analysts who cover Patrick expect it to report annual revenue for 2023 of $3.5 billion and earn $6.51 a share.
