Dometic Group has entered into an agreement to acquire Igloo – one of the world’s leading companies in passive cooling boxes and drinkware. The acquisition is a major step in Dometic’s strategy to grow in the outdoor industry and creates a strong base for further growth globally.
“This acquisition is in line with our strategy to position Dometic as a more consumer driven, less cyclical company in the fast-growing outdoor business,” said Juan Vargues, president and CEO of Dometic. “North America is the largest market for cooling boxes and outdoor products, and with Igloo’s strong brand recognition, consumer knowledge and local manufacturing capabilities, we are getting the necessary tools to further drive our sales and margin expansion.”
He added, “Igloo has shown strong sales growth, market share gains and margin improvements in recent years, driven by both commercial and operational initiatives. Further sales and cost synergy activities will be implemented to generate continued improvements.”
Igloo is a global provider of passive cooling boxes and drinkware products for the outdoor market. Founded in 1947, it is perceived as one of the leading manufacturers in the world with an iconic brand, a wide product range and strong consumer orientation. With 92 percent of net sales in the United States and products available in more than 90,000 retail stores globally, Igloo also has a-growing direct to consumer sales channel.
With its manufacturing facility in Texas, products are made primarily inhouse giving cost benefits, flexibility, and short lead-times for the North American market. Igloo has 1,100 employees and is headquartered in Katy, Texas.
Net sales of Igloo for the previous 12 months were $401 million (a growth of 24 percent), with an EBITDA margin of 10.1 percent.
Under the terms of the agreement, Dometic will acquire Igloo for $677 million, on a cash and debt free basis. In addition, the agreement includes an earn-out element of maximum $223 million to be realized depending on the future EBITDA development of Igloo.
