LCI Industries announced in a press release that its board of directors, in consultation with its outside financial and legal advisors, has unanimously determined that the unsolicited, nonbinding proposal received from Monomoy Capital Partners to acquire LCI for $101 per share in cash does not constitute a superior proposal and is not reasonably likely to lead to a superior proposal.
Why the Board Says Monomoy’s Offer Undervalues LCI
In reviewing Monomoy’s proposal, the board of directors carefully considered several factors and determined that a merger with Patrick Industries remains the best path toward long-term sustainable value creation for shareholders. Through its review, the LCI board of directors determined that Monomoy’s proposal substantially undervalues LCI:
- On a standalone basis: Monomoy’s proposal fails to reflect the fundamental value of LCI’s standalone business. As part of the LCI board of directors’ review, LCI, with the assistance of its advisors, updated its long-range plan, including to reflect the prevailing headwinds in the RV industry. Based on that updated plan, the valuation analysis of LCI on a standalone basis implies a midpoint discounted cash flow value in excess of $150 per share—materially above Monomoy’s proposal of $101 per share.
- When evaluating Monomoy’s proposal against the value creation opportunity of the combination with Patrick: Compared to the compelling financial benefits of the combination with Patrick, Monomoy’s proposal is materially below the implied value of LCI’s shareholders’ pro forma ownership in the combined company, including the meaningful incremental value creation opportunity resulting from approximately $150 million of net run-rate cost synergies expected to be achieved within three years of closing and participation in the future growth prospects of a fundamentally stronger company with the firepower and flexibility to support continued investment in growth and capital returns.
Patrick Merger Remains on Track for First Half of 2027
LCI and Patrick are making continued progress toward closing and remain on track to complete the transaction in the first half of 2027, subject to approval by shareholders of both companies, the receipt of required regulatory approvals, and the satisfaction of other customary closing conditions.
In connection with the proposed transaction between LCI and Patrick, LCI and Patrick have both filed a supplement to their joint proxy statement/prospectus that contains updated information with the SEC, which can be found on their respective investor relations websites. The LCI board of directors continues to recommend in favor of the Patrick transaction and encourages shareholders to vote their shares “FOR” the merger with Patrick at the special meeting scheduled for Nov. 18, 2026.
Perella Weinberg Partners LP is serving as financial advisor and Kirkland & Ellis LLP is serving as legal advisor to LCI Industries.