Dorman Products Inc (NASDAQ: DORM) has agreed to acquire automotive parts manufacturer Dayton Parts LLC for $338 million.
The transaction is expected to close in the second half of 2021.
With Dayton generating $168 million in net sales for the twelve months ended December 2020, Dorman expects Dayton’s acquisition will be immediately accretive to adjusted diluted earnings per share.
The acquisition would expand Dorman’s heavy-duty manufacturing and distribution platform.
“Through the combined company, we will be able to offer our increasingly diverse customer base a more expansive product offering with improved distribution efficiency,” said Kevin Olsen, Chief Executive Officer, Dorman.
Dorman will enter into a new $600 million revolving credit facility in connection with the transaction.
Dorman’s cash and equivalents totaled $166.6 million as of March 31, 2021.
Price action: DORM shares closed higher by 1.3% at $100.2 on Friday.
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