Dometic has closed a $875 million acquisition of marine steering and control systems manufacturer SeaStar Solutions.
The deal was fully financed via cash and committed bank facilities, and included $7 million in transaction costs, Dometic stated in a news release.
Return on investment is estimated to be above cost of capital within three years.
The acquisition closed Dec. 15, Domestic stated in a news release. In late November, the company entered into an agreement to acquire SeaStar Solutions from affiliates of American Securities LLC.
“I am truly excited about welcoming SeaStar Solutions to Dometic. The company will play a key role in our strategic ambition to build a broader global leadership in the marine business,” stated Dometic President and CEO Roger Johansson. As a combined company, we will be able to offer our partners and customers a very strong and unique range of products, services and support. The whole Dometic team looks forward to start working together with our new colleagues from SeaStar Solutions.”
Globally, Dometic offers branded solutions for mobile living in the climate, hygiene and sanitation, and food and beverage market segments.
The company supplies products for recreational vehicles, trucks and premium cars, pleasure and workboats, and a variety of other uses. Dometic employs approximately 6,500 people worldwide and is headquartered in Solna, Sweden.
SeaStar Solutions provides vessel control, fuel systems and system integration to the marine industry. The company’s brands include iSeaStar, Xtreme, Moeller, Optimus and Sierra. SeaStar Solutions operates eight facilities and employs approximately 1,250 people.
According to the National Marine Manufacturers Association, the U.S.outboard boat market in which SeaStar Solutions primarily operates has seen an average growth rate of 8 per cent annually from 2010 to 2016.
"We are very pleased that Dometic has selected SeaStar Solutions to play a key role in their marine expansion strategy,” stated SeaStar Solutions President and CEO Yvan Cote. ”Dometic's long-term vision and commitment to be the product leader and No. 1 in the market is very much in line with our existing goals and company culture. The combined businesses will allow us to operate from a very strong platform for further successful expansion and profitable growth.”
The combination of Dometic's existing position in marine air conditioners, refrigeration and sanitation, with SeaStar Solutions's position within the vessel control, fuel systems and system integration markets, will enable the enlarged Dometic to provide an unrivaled market offering and fully utilize a broad network of distributors, Dometic stated in its news release.