Another 12V Distributor Purchased Last Month

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Progressive Group

Here’s one we missed from last month.  The Progressive Group, which distributes car and home audio products in 16 states, has been purchased by Patrick Industries, a large manufacturer in the RV and home building industry, based in Elkhart, IN

Progressive Group, with revenues of $23 million last year, was purchased for $11 million in a deal that closed March 4.

The two companies had done business together over the past few years as Progressive sold AAMP and Crimestopper equipment to Patrick for use in RVs, said Progressive director Dave Russell.

Progressive will continue to distribute and represent car and home audio in its current territories in the midwest and mountain states. And it will continue all business ventures as usual.

Patrick said it purchased Progressive to gain a foot hold in the electronics distribution market.  CEO Todd Cleveland said, “This acquisition… represents an excellent opportunity to diversify our product offerings into new markets including big box retail and custom home and car audio shops…”

Russell said, “We had a relationship with their aftermarket electronics group called QAV.  They’ve been on the acquisition trail, acquiring many companies over the last 8 years.   They are growing through acquisition.”

With the new capital from Patrick,  Progressive said it will make future acquisitions and expand its manufacturers’ rep and distribution business. Rather than laying off employees, it is looking for new sales people in the Ohio valley and will be adding people in the Illinois/Wisconsin region, said Russell.

“We didn’t let anybody go. We’re actually hiring more people because we’re looking to expand. They are very hands off, they are not intrusive at all,” he said of Patrick.

Patrick has actually purchased more than 22 companies since 2010 and owns over two dozen in all.  Its strategy is to acquire new businesses and let them function independently, while supporting them with new financing so they can grow, said Russell.

Patrick is a $1 billion plus maker and distributor of building products for RVs, manufactured housing, kitchen cabinet, office and household furniture, fixtures and more.

The Progressive Group operates the Progressive Sales & Marketing rep firm and the R&D Distributors firm.  It carries brands including the Harman and Rockford families of brands, Kenwood, Directed, Denon, Marantz, Samsung, AAMP, Metra, Dual Electronics, Monster Cable, Beats by Dr Dre and WeatherTech.

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