Exhibit 99.2
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FOR IMMEDIATE RELEASE
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Date: July 21, 2003
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Contact: Leigh J. Abrams, President and CEO INDUSTRIES INCORPORATED
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Phone: (914) 428-9098 Fax: (914) 428-4581
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E Mail: Drew@drewindustries.com
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Drew Industries Purchases RV Component Maker LTM Manufacturing
LTM Owner Michael Nebel to take top R&D position at Lippert Components
WHITE PLAINS, New York, July 21, 2003 - Drew Industries Incorporated (AMEX: DW)
today announced that its wholly owned subsidiary, Lippert Components, Inc.,
acquired Smith Center, Kansas-based LTM Manufacturing, LLC.
LTM manufactures a variety of products for recreational vehicles, including
slide-out systems and specialty slide-out trays for batteries, LP tanks and
storage, as well as electric stabilizer jacks, flexguard slide-out wire
protection systems, and slide-out patio decks. Several of these products are
patented and have been introduced to the RV market only relatively recently on a
limited basis. Drew said it does not believe the products have yet realized
their full sales potential.
Drew, a manufacturer of components for recreational vehicles and manufactured
homes, reported that the purchase price of $3.85 million includes the LTM
facility, as well as patents developed by Michael Nebel, LTM's founder and
owner. Drew also repaid $250,000 of LTM's debt on closing. The purchase price
was funded with Drew's available cash, and after the acquisition the Company had
no borrowings under its $30 million line of credit.
Drew also said Mr. Nebel will join Lippert as its Manager of Research and
Development. Mr. Nebel has a proven track record of developing new products for
the RV industry, and his employment contract with Lippert provides for
incentives for the development and sale of new products.
In addition to being the inventor of LTM's products, Mr. Nebel was LTM's sole
salesperson, and as a result the LTM product line is currently sold to only a
few customers. Lippert Components, with its sizable marketing ability, hopes to
introduce these innovative, time-saving and convenient products to its
substantially larger customer base.
LTM generated revenue of approximately $4 million in 2002. Drew said it expects
the acquisition to be immediately accretive to earnings. After the acquisition,
Lippert Components will assume the purchasing function for LTM and will transfer
much of LTM's production to several Lippert factories, which are more efficient
than the LTM factory. Savings on purchasing and production are expected to
generate substantial and immediate savings to Lippert Components and LTM.
Certain LTM products will continue to be manufactured in the Smith Center,
Kansas facility, which will be used primarily as a research and development
center for Lippert Components.
Leigh J. Abrams, President and CEO of Drew, said: "This acquisition brings
several complementary products to Lippert Components. LTM and its innovative
products, along with the engineering expertise of Mike Nebel, will be great
additions, and we expect to expand our market share in the RV segment as a
result of this acquisition."
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"I am excited about the opportunity to join Lippert Components, and to be able
to devote my full energies to developing new products to meet the changing needs
of RVers," Nebel said. "I am also happy that Lippert will be able to use its
extensive marketing and production capabilities to expand the distribution of
LTM products."
About Drew Industries
Drew, through its wholly-owned subsidiaries, Kinro, Inc. and Lippert Components,
Inc., supplies a broad array of components for RVs and manufactured homes.
Manufactured products include aluminum and vinyl windows and screens, doors,
chassis, chassis parts, RV slide-out mechanisms, and bath and shower units. From
40 factories located throughout the United States and one factory in Canada,
Drew serves most major national manufacturers of RVs and manufactured homes in
an efficient and cost-effective manner. Additional information about Drew and
its products can be found at www.drewindustries.com.
Forward Looking Statements
This press release contains certain statements, including the Company's plans
and expectations regarding its operating strategies, products and costs, and its
views of the prospects of the recreational vehicle and manufactured housing
industries, which are forward-looking statements and are made pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's views, at the time such
statements were made, with respect to the Company's future plans, objectives,
events and financial results, such as revenues, expenses, income, earnings per
share, capital expenditures, and other financial items. Forward-looking
statements are not guarantees of future performance; they are subject to risks
and uncertainties. The Company does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the date the
forward-looking statements are made.
There are a number of factors, many of which are beyond the Company's control,
which could cause actual results and events to differ materially from those
described in the forward-looking statements. These factors include pricing
pressures due to competition, raw material costs (particularly aluminum, vinyl,
steel, glass, and ABS resin), availability of retail and wholesale financing for
manufactured homes, availability and costs of labor, inventory levels of
retailers and manufacturers, the financial condition of our customers, interest
rates, and adverse weather conditions impacting retail sales. In addition,
general economic conditions and consumer confidence may affect the retail sale
of recreational vehicles and manufactured homes.
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