DESCRIPTION OF VALTERRA
Valterra is a leading North American provider of service and aftermarket products, consumables and accessories for the RV industry, which represents almost 90% of the company’s sales, as well as other industries such as CPV. Its product categories include solar power solutions, sewer and sanitation products, power cords and other electrical products and accessories. The company’s products, sold under a variety of brands, including Valterra and Go Power!, are widely recognized as leading brands in their respective categories. Approximately 2/3 of the sales are derived from service and aftermarket customers, supported by a large and growing installed base of vehicles in the RV and CPV industry.
2020 sales were approximately USD 94 million with a good operating margin and an organic sales growth of 12%.
Founded in 1981, Valterra has approximately 550 employees with offices in California, Florida and British Columbia and has its own manufacturing facility in Mexico.
BACKGROUND AND REASONS FOR THE TRANSACTION
Expansion in Service and Aftermarket is a strategic priority for Dometic, as it offers attractive market dynamics, strong earnings potential, good opportunities for further expansion and low cyclicality. Valterra supports this strategy with a wide range of service and aftermarket low-ticket sales products and a proven strong profitability. With Go Power!, Dometic is also significantly increasing its presence in the fast-growing market for solar power solutions tailored to a mobile outdoor lifestyle.
"I am pleased to welcome Valterra and its employees to Dometic. The acquisition is part of our strategy of strengthening our Service and Aftermarket position in the growing Outdoor industry. Valterra complements our product portfolio and strengthens our offer to make Dometic even more relevant to our current and future customers, "says Juan Vargues, President and CEO of Dometic.
The transaction price is not disclosed. The acquisition is fully financed via cash on hand and is expected to be accretive to Dometic’s EPS from start.
Closing is expected to take place during the second quarter of 2021, pending regulatory approvals.
Dometic är världsledande inom lösningar för det mobila livet på områdena mat och dryck, klimat, energi och styrning och andra applikationer. Dometic har verksamhet i Nord- och Sydamerika, EMEA samt Asien och Stillahavsområdet och erbjuder produkter som används i fritidsfordon, lastbilar och premiumbilar, i fritidsbåtar och arbetsbåtar samt inom en rad andra områden. Vår drivkraft är att skapa smarta och tillförlitliga produkter med enastående design. Vi säljer våra produkter i ett hundratal länder och vi har ett globalt nätverk av återförsäljare som servar aftermarket. Dometic har cirka 6 500 medarbetare världen över, redovisade en nettoomsättning på över 16,2 Mdr SEK för år 2020 och har huvudkontor i Stockholm.