EQT’s Dometic bolts on Atwood and Prostor

Dometic has bought US-based Atwood Mobile Products, a manufacturer of appliances and hardware for the recreational vehicle (RV) industry, for an undisclosed amount.

The GP also announced the acquisition of Prostor, the RV awning division of Belgian Brustor. The deal was completed in August.

Both deals were financed through a combination of debt and new equity from EQT V, Dometic's owner.

Atwood and Prostor will be bolted onto Dometic, a Swedish producer of RV hardware such as air conditioners, refrigerators, cookers, mobile power equipment and safety products.

Financing costs for the Solna-based company were reduced substantially in June this year, when it refinanced its debt by issuing €314m in senior PIK toggle notes to buy back its existing 12.75% senior PIKs, which had raised €202m when they were issued.

President and CEO of Dometic Roger Johansson said the purpose of the deals were to expand the company's product range, with Atwood bolstering Dometic's offering in the North American markets, and Prostor improving its new parent's awning range in Europe.

The deal is subject to regulatory approval.

Previous funding
EQT carved out Electrolux Leisure Appliances from its Swedish parent in 2002, renaming it Dometic Appliances.

Three years later, the company was sold to BC Partners in a secondary buyout, and began pursuing a buy-and-build strategy, which saw a number of subsequent bolt-ons.

Following a rebranding as Dometic Group in 2009, the company was taken over by Mizuho Corporate Bank after a covenant breach. Mizuho had provided the debt package for EQT's initial buyout in 2002.

EQT took ownership of Dometic again in 2011 for a reported SEK 12bn through the EQT V fund.

Company
Atwood operates primarily in the US, Canada and Australia, managing sales of close to $200m. The Elkhart, Indiana-based company was founded in 1909 and has 775 employees.

Meanwhile, Dometic employs 6,200 staff and sells its products in nearly 100 countries. Group sales amounted to around SEK 8bn in 2012/13.

The new acquisitions will boost revenues to approximately SEK 10bn on a rolling 12-month basis, and increase staff to 7,200.

People
Roger Johansson is president and CEO of Dometic Group, while Frank Marciano is president of Dometic Americas. Tim Stephens is president and CEO of Atwood Mobile Products.

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• Topics
• Nordics
• Consumer
• Expansion
• Sweden
• EQT
• Acquisition finance