Dometic finalized its eighth acquisition of the year, Igloo Products Corp., on Oct. 26 and consolidated the company the same day.
The acquisition was announced Sept. 17, when Dometic entered into an agreement to acquire Igloo from the private equity group ACON Investments for $677 million. The acquisition was slowed by the regulatory approval process, Dometic stated.
Dometic President and CEO Juan Vargues welcomed Igloo employees to Dometic. Earlier this month, Vargues noted Dometic’s sales channel mix is strengthening. He pointed to the company’s acquisitions accelerating the move to a more consumer-oriented company.
“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,” Vargues said. “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.”
Igloo has 1,100 employees, including 600 to 700 in manufacturing, and grew sales 24% in the past 12 months to $401 million.
Igloo also has its own fast-growing direct to consumer sales channel with products available in more than 90,000 retail stores globally and its own manufacturing facility in Texas. Igloo products are primarily manufactured inhouse giving cost benefits, flexibility, and short lead-times for the North American market.
The acquisition brings Dometic’s OEM share of overall business to 44%, down from 61% when Vargues came on board in 2018. After the deal, Dometic will increase its aftermarket/service share to 31% with 25% in distribution. The company said the acquisition will reduce sales cyclicality for Dometic as the company broadens its sales exposure from “high ticket discretionary spend” to “low ticket discretionary spend.”
