Through its ownership of Igloo, Hauser Private Equity recently worked with Acon Investment to finance the acquisition of the company by Swedish-based Dometic.
Both brands are known for their commitment to outdoor products and the partnership is expected to launch significant growth for both brands. We’ll look at the details of the transaction and how Igloo can strengthen the offerings of Dometic.
Igloo as the Leader of the Cooler Market
Since its launch in the 1940s, Igloo has been known for its commitment to quality in coolers. The CEO of Dometic was interested in the company not just because of its brand recognition, but also because of its lower-ticket items.
With its higher price points in the market, Dometic has been known for its cyclical sales. Specializing in bigger items, like boats and RVs, CEO Juan Vargues wanted to expand its offerings to break into other markets. He saw an opportunity with Igloo. The purchase of Igloo allows Dometic to expand its US sales at lower prices, which will help smooth out its overall revenue.
Hauser Private Equity and Acon Investment worked together to secure $677 million for Igloo. This deal is expected to boost sales of Dometic by $150 million annually. This is exactly the kind of transaction that Mark Hauser’s Hauser Private Equity works toward in his dealings. While Hauser Private Equity wasn’t technically the deal lead, they were an integral part of settling the terms and conditions.
Hauser is known for targeting the middle markets because there’s so much room for growth. His company is always looking for solid partners that show promise in the larger spaces, which is certainly what he received by partnering with Igloo. This brand has been targeting a growing segment in the US of people who want outdoor products without the accompanying high price tags.
In addition to bringing the Igloo brands under its umbrella, Dometic has the chance to streamline both the supply chain and distribution, which is expected to save the company around $5 million every year. Considering the current projections, Igloo’s total EBITDA improvements are expected to hit $50 million USD within the next 5 years. This deal is expected to be completed within Q4 of 2021, provided all regulatory approvals go through.
Sales in the US and Beyond
Dometic has had an incredibly busy year in terms of acquisitions. In fact, Igloo is just one of this year alone, and CEO Vargues has no plans to stop here. In 2020, the annual revenue of Dometic was $1.9 billion and its leaders are intent on leveraging that position to gain a stronger global presence.
While it still faces stiff competition from brands like YETI and Coleman, this partnership is expected to be a key part of cementing the brand’s presence even more in the public eye. With a focus on both coolers and drinkware, as Igloo is known for, investors are expecting to see revenue pick up for these quality products.