Dometic Group pays $677m for Igloo to become number one US cooler supplier
Sweden’s Dometic Group AB, the maker of accessories for the outdoor leisure industry, has agreed to buy US cooler giant Igloo Products Corp for $677m.
The agreement includes an earn-out element of a maximum $223m depending on the future EBITDA development of Igloo and makes Dometic the number one cooler and drinkware maker in the US with a global market estimated at $8 billion.
Dometic says that the Igloo acquisition will significantly strengthen its offer and distribution network for the outdoor market in North America. Net sales for the 12 months to July 2021 for Igloo, which sells a range of fishing coolers and ice chests, was $401 million, an increase of 24% on the previous 12 months.
“I am excited to welcome Igloo and its employees to Dometic. This acquisition aligns with our strategy to position Dometic as a more consumer-driven, less cyclical company in a fast growing outdoor business,” said Juan Vargues, President and CEO of Dometic. “North America is the largest market for cooling boxes and outdoor products. With Igloo’s strong brand recognition, consumer knowledge and local manufacturing capabilities, we are getting the tools to drive our margin expansion further.
“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 ones remains strong.”
“I am extremely proud of everyone on our team who has worked so hard in building Igloo into an iconic American brand,” said Dave Allen, President and CEO of Igloo Products Corp. “As part of the Dometic Group, we look forward to combining our resources to accelerate innovation and growth across the globe.”