EQT sells Dometic to funds advised by BC Partners

EQT III (”EQT”) has signed an agreement with funds advised by BC Partners to sell Dometic. The sale means that EQT will receive SEK 256 per share. Dometic was acquired by EQT in July 2001 from Electrolux. Under the ownership of EQT Dometic underwent extensive programmes of development and investment. Several major company acquisitions were made, including Dometic’s expansion in the marine area through acquisitions of SeaLand and TaylorMade Environmental, and a large number of new products were developed and introduced. Additionally, a thorough brand launch was achieved. Dometic is now a leading manufacturer of innovative leisure products such as refrigerators, awnings, air conditioners and stoves for caravans, campers and boats. The company also manufactures specially adapted refrigerators for hotel rooms, offices and medical products. These are sold in almost 100 countries and production is mainly at the company’s own facilities around the world. The measures implemented have shown good results. Sales have increased annually by 7 percent during EQT's ownership, from SEK 5.6 billion in 2001 to almost SEK 7 billion in 2004. Profit, expressed as EBITDA, has risen annually by 11.5 percent in the same period. This makes 2004 a record year, both for sales and profit. The number of employees has also shown a positive trend, growing by almost 400 people to just under 4 400. ”Dometic has blossomed into a global group and is a good example of a company where EQT identified a business with great potential and then joined with the company to realise this potential. Dometic's development potential continues to be great, but we have carried out the development plan we had on acquisition and the fund has a limited investment period. That’s why it’s time for a new owner”, says Håkan Johansson, partner in EQT Partners, who advise EQT’s funds. ”Dometic still has very great potential to continue our positive development. Having BC Partners as new owner, and their ambitions, the conditions are optimal for continued development with strong and profitable growth”, says Lars Johansson, CEO of Dometic. “Dometic is an exciting company with excellent future prospects. The Dometic management and the existing organization will continue to be key in further developing Dometic’s leading products and positions. We hope to be a valuable partner in this next phase”, says Simon Palley, who led the investment in Dometic at BC Partners. The sale is conditional on approval by the relevant competition authorities. EQT has been advised by Merrill Lynch. BC Partners was advised by Morgan Stanley with financing for the transaction led and arranged by Mizuho Corporate Bank.