17/12/2017

17 December 2017
17 December 2017, Comments Comments Off on Dometic acquires SeaStar Solutions
Dometic acquires SeaStar Solutions

Dometic entered into an agreement to acquire SeaStar Solutions from affiliates of American Securities LLC. All approvals have been obtained and Dometic will pay a cash purchase price of USD 875 million. SeaStar Solutions is a leading, global provider of vessel control, fuel systems and system integration to the marine industry and is the market leader in its key product areas with strong market shares. The company today operates some of the strongest brands in the market, such as SeaStar, Xtreme, MOELLER, Optimus and Sierra. The Sierra aftermarket platform is the world’s largest independent marine aftermarket supplier. SeaStar Solutions is based in North America and employs approximately 1,250 people.

 “I am truly excited about welcoming SeaStar Solutions to Dometic. The company will play a key role in our strategic ambition to build a broader global leadership in the marine business. As a combined company, we will be able to offer our partners and customers a very strong and unique range of products, services and support. The whole Dometic team looks forward to start working together with our new colleagues from SeaStar Solutions”, says Roger Johansson, President and CEO of Dometic.

Acquisition summary
• Dometic acquires SeaStar Solutions, a leading provider of vessel control systems and aftermarket products to the attractive leisure marine industry.
• Cash purchase price of USD 875 million on a cash and debt free basis.
• Transaction costs of approximately USD 7 million (approximately SEK 60 million).
• Sales and cost synergies of USD 20 million per annum, fully realized within 3 years.
• Immediately accretive to Dometic’s operating margin and EPS.
• Net debt / EBITDA ratio at closing of 3.3x. Net debt / EBITDA ratio is expected to be within the target level of 2x in 24 months.
• Dometic intends to maintain its dividend policy of at least 40 per cent of net profit.