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Domestic recently purchased Igloo for $677 million, a major purchase for the international brand. This deal was struck with the assistance of Hauser Private Equity (through its ownership of Igloo) and Acon Investment. We look at the details of the sale and what both brands stand to gain from the partnership.
Complementary Values
Domestic has been on an acquisition streak this year, with Igloo being the 8th (so far) in 2021 alone. This Swedish-based company led by CEO Juan Vargues is known for its global presence and high-ticket outdoor items, such as campers and boats.
Igloo, known for its coolers and drinkware, was an obvious addition for a company looking to increase revenue and reduce the cyclical nature of its sales. The outdoor product market has been growing in the US, particularly in the lower-end segment of the market. More specifically, consumers want affordable items that allow them to better enjoy the beauty found all over the country.
Igloo has provided quality products and been a trusted brand since its launch in the 1940s and this has led companies like Hauser Private Equity and Domestic to take notice of the company’s efforts. Considering that Domestic specializes in the high end while Igloo rounds out the lower and middle markets, there’s a lot to be gained here.
All in all, the sale is expected to result in $150 million more in revenue per year for Domestic and $5 million annual savings based on a more streamlined supply chain. In 5 years, the EBITDA improvements of Igloo are expected to hit $50 million. Investors are ready for stronger performances from both brands after the ink has dried.
Hauser Private Equity on Organic Growth
Hauser Private Equity was kept in the loop on the deal, ensuring that the terms were fair to all involved. (As long as the regulatory approvals go through, the transaction is expected to be completed in Q4 2021.) This is exactly the kind of growth that Hauser Private Equity founder Mark Hauser has always prioritized.
Specializing in the lower and middle markets has given his company that much more room to expand them with the help of strategic advice and the financing of partnerships like this one. Domestic’s revenue last year was $1.9 billion, representing a huge opportunity for Igloo to grow its position in the market. Even with competition like YETI and Coleman, the future looks bright for both names. There’s a lot of room for Igloo to become more prominent for buyers today.
Already featured in more than 110,000 storefronts in the US and commanding a large portion of outdoor product sales, the brand’s products only stand to become that much more promoted with the backing of Domestic. As of now, there are no expected changes in the family of brands. The company will report as one of the brands under the Global segment of Domestic and retain its signature coolers and drinkware.
