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Dometic Acquires Front Runner Vehicle Outfitters

Dometic Acquires Front Runner Vehicle Outfitters

Press release

5/19/2021

Dometic Acquires Front Runner Vehicle Outfitters

Stockholm, Sweden - May 20, 2021. On May 20, 2021, Dometic entered into an agreement to acquire Front Runner Vehicle Outfitters – a global provider of high-qualitive products for the outdoor market headquartered in South Africa.

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Summary

This transaction strengthens Dometic’s product offering and distribution network for the vehicle based outdoor market.
Net sales of Front Runner Vehicle Outfitters in the last fiscal year were approx. USD 35 million with a good operating margin.
The products are sold on four continents through their own B2C e-channels (appr. 50% of total sales) and through more than 600 dealers.
The transaction is expected to be accretive to Dometic’s EPS from start.

Description of Front Runner Vehicle Outfitters

Front Runner Vehicle Outfitters is a global provider of high qualitive products for the vehicle based outdoor market. The products include roof racks, rooftop tents, storage products and load bars. The products are sold on four continents through their own B2C e-channels (appr. 50% of total sales) and through more than 600 dealers.

Net sales in the last fiscal year were approx. USD 35 million with a good operating margin.
Front Runner Vehicle Outfitters is privately owned, has approximately 320 full-time employees with the headquarters and manufacturing near Johannesburg, South Africa.

Background and reasons for the transaction

Dometic has identified the vehicle based outdoor market as a strong opportunity for growth. Front Runner Vehicle Outfitters, with its offering of high-quality outdoor products, is a perfect fit to Dometic’s existing offering for this market.

"I am pleased to welcome Front Runner Vehicle Outfitters and its employees to Dometic. With this acquisition we are strengthening our offering and distribution network for the outdoor market. Our strategy for profitable expansion in Mobile Living is built on a combination of organic and acquisitive growth. This is our fourth announced acquisition this year and our pipeline of potential future acquisitions remains strong." says Juan Vargues, President and CEO of Dometic.

The acquisition is fully financed via cash on hand and is expected to be accretive to Dometic’s EPS from start.

The transaction price is not material in relation to Dometic’s market capitalization and is not disclosed. Closing is expected to take place during the third quarter of 2021.

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About Dometic

Dometic is a global market leader in the mobile living industry. Millions of people around the world use Dometic products in outdoor, residential, and professional applications. Our motivation is to create smart, sustainable, and reliable products with aspirational design for an outdoor and mobile lifestyle in the areas of Food & Beverage, Climate, Power & Control, and Other Applications. Dometic employs approximately 7,700 people worldwide, had net sales of SEK 16.2 billion in 2020 and is headquartered in Stockholm, Sweden.