Dometic acquires two more brands in the outdoor sector: Cadac International and Igloo
Dometic is acquiring two more brands in the outdoor market - Cadac International, the provider of premium barbecues and accessories, and Igloo, the provider of passive cooling boxes and drinkware products.
Cadac had net sales of approx. EUR 17 million in 2020, with a good operating margin. This transaction strengthens Dometic’s product offering and distribution network for the growing vehicle based outdoor market.
Cadac products are sold primarily across Europe through a network of more than 600 dealers and their own B2C e-channels. The company is privately owned and has approximately 40 full-time employees.
Dometic has identified the vehicle based outdoor market as a strong growth opportunity as more and more people spend time outdoors using a vehicle or boat as the base. Cadac, with its offering of premium outdoor barbecue products, is a perfect fit to Dometic’s existing offering of cooling boxes, tents, mobile power solutions and other outdoor equipment.
"I am pleased to welcome Cadac and its employees to Dometic. With this acquisition we are strengthening our offering and distribution network for the growing outdoor lifestyle market. Our strategy for profitable expansion in Mobile Living is built on a combination of organic and acquisitive growth. This is our seventh announced acquisition this year and our pipeline of potential future acquisitions remains strong." says Juan Vargues, President and CEO of Dometic.
The transaction price for Cadac has not been disclosed. Closing is expected to take place during the fourth quarter of 2021.
The acquisition of Igloo will significantly strengthen Dometic’s offering and distribution network for the outdoor market in North America. Dometic will acquire Igloo for USD 677 million, on a cash and debt free basis. Closing is expected in Q4 2021, subject to regulatory approvals.
Net sales of Igloo for the previous 12 months were USD 401 million (a growth of 24%), with an EBITDA margin of 10.1%. Sales and cost synergies are expected to generate annual improvements on EBITDA of approximately USD 50 million, to be realized within five years.
The acquisition of Igloo is a major step in Dometic’s strategy to continue grow in the attractive outdoor industry and creates a strong base for further growth globally.
"I am excited to welcome Igloo and its employees to Dometic. 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. 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." says Juan Vargues, President and CEO of Dometic.
"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." continues Juan Vargues.
"Our strategy for profitable expansion is built on a combination of organic and acquisitive growth. This is our eighth acquisition this year and our pipeline of potential future acquisitions remains strong." says Juan Vargues.
Igloo is a global provider of passive cooling boxes and drinkware products for the outdoor market. Founded in 1947, Igloo 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% of net sales in the US and products available in more than 90,000 retail stores globally, Igloo also has its own fast-growing direct to consumer sales channel.
Igloo has its own manufacturing facility in Texas, products are primarily manufactured 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.
“I am extremely proud of everyone on our team who has worked so hard in building Igloo into an iconic American brand.” says Dave Allen, President and CEO of Igloo Products Corp. “As part of the Dometic Group, we look forward to combining our resources in order to accelerate innovation and growth across the globe.”
Igloo is currently owned by the private equity group ACON Investments, which acquired the company in 2014.
The global market for cooling boxes and drinkware is a growing 8 billion USD market fueled by the outdoor trends visible across the world. Igloo has a clear number one position in this market in the US. Combined with Dometic’s global presence and product offering of both active and passive cooling boxes, drinkware and fast-growing range of other outdoor products, the acquisition is expected to create a strong base to further grow in the outdoor segment. It will also reduce sales cyclicality for Dometic, as it broadens the sales exposure from “high ticket discretionary spend” to ”low ticket discretionary spend”.