Katy’s igloo to be acquired by a Swedish company

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A Swedish company will buy cooler maker Katy Igloo Products for $ 677 million as it seeks to tap into the growing outdoor sports and recreation market.

Igloo, one of the nation’s largest manufacturers of coolers and coolers, struck a deal last week with Dometic, a supplier of travel and leisure equipment, according to Dometic. The acquisition will strengthen Dometic’s outdoor offerings and distribution network in North America, the Swedish company said.

The outdoor sports and recreation market has exploded during the pandemic as people search for safe ways to stay active. The global cooler and outdoor beverage market is also growing, reaching $ 8 billion annually, Dometic executives said on a teleconference on Friday. The coolers and coolers segment grew 20% between July 2020 and July 2021, said Matt Powell, vice president and senior industry advisor for market research firm NPD Group.

Igloo grew faster than its main competitor, Austin Yeti, during the pandemic, Powell said. Igloo, which has about 1,100 employees, reported revenue of $ 401 million in the past year, according to a press release. The deal is expected to be finalized by the end of the year.

“I am extremely proud of all of our team who have worked so hard to make Igloo an iconic American brand.” Dave Allen, president and CEO of Igloo, said in a statement. “As part of the Dometic group, we look forward to combining our resources to accelerate innovation and growth around the world. “

Powell said he expects Dometic to provide the money Igloo needs to thrive as people look for ways to extend their lives in their backyard. Dometic reported sales of around $ 1.9 billion (SEK 16.2 billion) in 2020.

“With this brand doing pretty well right now, they’re going to need more capital to continue this growth,” he said. “It should help them grow even faster. “

Igloo will benefit from Dometic’s global reach, which will allow the Katy Company to expand its direct-to-consumer business – shipping direct to customers who order online – into international markets, Dometic executives said. Igloo has just started to branch out into direct-to-consumer sales in the last 18 months of the pandemic, Dometic executives said, which means there is plenty of room to grow.

Juan Vargues, CEO of Dometic, said he was drawn to Igloo’s proximity to North American markets and impressed with the brand’s prominence in US stores.

“The goal with Igloo is really to keep the brand,” he said. “We see the cooler market as a very attractive growth market,” he said.

. Igloo is part of the private equity group ACON Investments, which acquired the company in 2014, the statement said.

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