Patrick Industries completed the acquisition of the business and certain assets of electronics distributor and manufacturers’ representative Progressive Group for $11 million.
Progressive operates out of seven locations serving 16 states, primarily in the Midwest and Intermountain regions.
The company’s main customer base includes small, mid-size and large retailers, distributors, and custom installers primarily serving the auto and home electronics, retail, custom integration, and commercial channels.
Progressive's 2015 revenues were approximately $23 million and the company expects the acquisition to be immediately accretive to 2016 net income per share.
"The acquisition of Progressive provides the opportunity for Patrick to capitalize on its existing Quest Audio Video electronics platform and nationwide geographic footprint to expand our presence in the electronics distribution market," Patrick Chief Executive Officer of Todd Cleveland said in a news release. “This acquisition is well-aligned with our strategic initiatives and capital allocation strategy and represents an excellent opportunity to diversify our product offerings into new markets including big box retail and custom home and car audio shops, as well as further positioning us to capitalize on the continued growth and upside potential in the residential housing market.”
The acquisition of Progressive was funded under the Company's existing credit facility and includes the acquisition of accounts receivable and inventory. Patrick will continue to operate the business on a stand-alone basis under the Progressive brand name in its existing facilities.
“After more than 15 years in business, Progressive's exceptional team and I are excited to partner with the Patrick organization, which shares our long-term vision to be a premier high-quality distributor and rep firm for the markets we serve,” Progressive’s founder David Russell said.