Matrix Announces the Successful Sale of G.G. Schmitt & Sons, Inc.
RICHMOND, VA / BALTIMORE, MD – October 1, 2019 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of G.G. Schmitt & Sons, Inc. (“G.G. Schmitt” or the “Company”) to Patrick Industries, Inc. (NASDAQ: PATK) (“Patrick”), a manufacturer and distributor of component products and building products serving the recreational vehicle, marine, and various other industrial markets.
Ron Schmitt, Chief Executive Officer of G.G. Schmitt, noted, “After more than 68 years as a family-owned business in the marine industry, we are incredibly pleased to partner with Patrick which will continue to support the G.G. Schmitt team and our plans for continued growth and expansion. We are excited to be a part of the Patrick family of brands and are looking forward to the next phase of executing on the many strategic initiatives and opportunities in front of us.” Regarding Matrix’s services, Mr. Schmitt added, “We couldn’t have asked for a better representative than the Matrix team during this critical process. Their transactional expertise matched with their knowledge of the marine sector were instrumental in helping us achieve this outcome. We are so appreciative of all of their efforts.”
Matrix provided merger and acquisition advisory services to G.G. Schmitt, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was led by David Shoulders, Managing Director and Head of Matrix’s Consumer & Industrial Products Group, William O’Flaherty, Vice President, and John Mosser, Analyst. Mr. Shoulders noted, “It was a pleasure to work with Ron, Gere and Steve to find a home for the brand their father started and they helped grow.” Mr. O’Flaherty added, “This marks the second transaction Matrix has closed in the marine market in the past year and is reflective of our dedication to serving the advisory needs of business owners in the outdoor and recreation industries.”
Originally established in 1951 by Gervase G. Schmitt to service the marine and rail-transit industries, G.G. Schmitt has grown into the premier designer and manufacturer of customized hardware and structural components to major OEMs in the marine industry. The Company offers various aluminum and stainless-steel components, including marine towers, seats, ladders, handrails, port lights, and other metal hardware and related products. G.G. Schmitt is often recognized as the leading provider of fabricated and superior finished metal products in the markets it serves.
Throughout its entire history, G.G. Schmitt has been a family-oriented enterprise. Ron Schmitt and his two brothers, Gere (Vice President) and Steve (Vice President – Materials), have been operationally involved in the Company since the early 1970’s and were provided majority ownership of G.G. Schmitt in the 1990’s. Under their leadership, in addition to growing the Company’s manufacturing and engineering capabilities, G.G. Schmitt has expanded regionally to support its blue-chip customer base. Along with its headquarters in Lancaster, PA, the Company now boasts facilities in Sarasota, FL and Summerville, SC. Today, across all of its locations, G.G. Schmitt maintains over 120,000 square feet of manufacturing space supported by the Company’s 160 dedicated employees.
“G.G. Schmitt’s excellent reputation within the marine industry has been built over many decades based on its high-quality products, engineering expertise, and strong industry relationships,” said Todd Cleveland, Chairman and Chief Executive Officer of Patrick. “This acquisition is aligned with our strategic initiatives and capital allocation strategy and we look forward to working with the G.G. Schmitt team to help further drive brand value.”
“We believe the marine industry is well-positioned for long-term growth, and we are excited to partner with the G.G. Schmitt team, who have a proven track record of consistently and creatively adapting to changing dynamics in the marine space, and continue to foster and strengthen marine customer relationships through high-quality, innovative custom product solutions and its legacy of excellent customer service,” said Andy Nemeth, President of Patrick. “G.G. Schmitt’s brand platform and highly engineered processes and products, as well as its longstanding relationships with leading marine OEM customers, have been instrumental in expanding its customer base within the recreational boating market. Consistent with previous acquisitions, we will support G.G. Schmitt with a financial and operational foundation that will allow it to capitalize on its core competencies while preserving the entrepreneurial spirit that has been so important to its success.”
Brubaker Connaughton Goss & Lucarelli LLC served as legal counsel and Trout, Ebersole & Groff, LLP provided tax and accounting services for G.G. Schmitt.