Dometic Group to adopt new ownership structure

SOLNA, Sweden – Dometic Group’s majority owner – BC Partner – and a bank consortium led by Mizuho have reached an agreement under which the Dometic Group will have a new ownership structure, the supplier reported in a recent statement. The new agreement is in response to the “severe” effects of the global recession, according to the company, which supplies the RV and marine markets with products such as air conditioners, refrigerators, sanitation systems and more.

Under the agreement, the bank consortium will be the principal owner with 70 percent of the shares. Dometic’s management and other key personnel, totaling some 100 persons, will own 25 percent, and representatives from the Board of Directors will own 5 percent. Over time, a new Board of Directors will be appointed with representatives from industry, banks, employee organizations and Dometic’s management, the company stated. A representative from the industry will act as chairman.

The company said the agreement will significantly lower Dometic’s debt and interest expenses. Dometic’s net debt will be reduced from about SEK 13 billion to about SEK 8 billion. At the same time, interest expense will decline by 70 percent from SEK 750 M to SEK 250 M on an annual basis. Dometic said it will also obtain an expanded credit facility of SEK 400 M for more aggressive market investments.

Reductions in production within the caravan and motor home industry, as well as the leisure boat industry, “had a severe impact on Dometic and forceful measures were required to adapt the group’s costs to the prevailing market climate,” the company stated. Over the past year, costs were reduced by about 35 percent, it added.

Despite the impact of the recession, the company remains profitable. For the period from January to June 2009, sales amounted to slightly more than SEK 3.5 billion (4.9), and operating profit before depreciation was SEK 327 M (818), the company reported. Dometic reported a positive cash flow from operations after tax of SEK 118 M (243) and had nearly SEK 1 billion in cash and cash equivalents.

“Through this reconstruction, Dometic’s management will once again be able to concentrate wholeheartedly on further developing the business, nurturing partnerships with customers and expanding the company,” said Dometic President and CEO Fredrik Möller.

In addition, the new prerequisites contribute to the plans for a future exchange listing becoming possible within a few years, the company stated.

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