Hauser Private Equity recently worked with partner Acon Investment to finance the purchase of Igloo by the Sweden-based company known as Dometic. This deal was completed to strengthen Dometic’s position in the US and reduce the cyclical nature of its sales. Learn more about the numbers behind the deal and how the investment company worked to secure the partnership.
$677 Million for the Leader of the Cooler Market
In the US, Igloo is synonymous with coolers, making the company a coveted one for both quality and brand recognition. Domestic ultimately acquired the company with an agreement for $677 USD on a debt-free basis, using internal funds to complete the transaction. The Domestic-Igloo deal is meant to strengthen both sales platforms, merging the two for expected results of $150 million more in annual sales.
In addition to sales, the company can now streamline the supply chain and distribution patterns as well, a feat that’s expected to result in $5 million in cost benefits every year. Within 5 years, the improvements to Igloo’s total EBITDA are expected to reach $50 million USD.
It was Acon Investments who led this deal, though Mark Hauser and his staff at Hauser Private Equity were thoroughly up to speed throughout the transaction. Hauser saw an opportunity to unite two companies that could help all parties involved. After regulatory approvals are confirmed, the transaction is expected to close during the final quarter of 2021.
No Change for Igloo Brands
There are no changes expected to the family of brands already established by Igloo, though it may get a refresh down the line. It will be a part of the Global segment of Dometic. This Swedish company is already known for its outdoor products, including boats, campers, and RVs. The company’s marketing strategy with its acquisition of Igloo will capitalize both on the loyal base of Igloo and open the doors to a segment of lower-ticket items that are currently growing in the US.
Breaking into markets with more comfortable price points for more individuals and families will ensure Dometic’s sales numbers remain strong all year round. This will encourage further growth around the world.
In 2020, the annual revenue of the company was $1.9 billion USD, and this Igloo acquisition is just one of eight other acquisitions this year alone. The CEO of the Dometic, Juan Vargues, remarked that the company had big plans for further growth in the near future as well.
The Art of the Deal
Igloo has pioneered the cooler segment since 1947 when it was first introduced. It’s the #1 cooler brand, with more than 110,000 storefronts carrying their products. The company also manufactures drinkware products and commands a significant portion of net sales in the US for this segment.
Hauser Private Equity is proud to be an integral part of this monumental deal. As direct co-investors in the lower-middle to the middle-market range, Hauser’s staff is focused on forming the kinds of collaborative partnerships that lead to growth on a larger scale.