It is reported that on the 20th of May 2021 Dometic entered into an agreement to acquire Front Runner Vehicle Outfitters – a global provider of high-quality products for the outdoor market with its headquartered right here in South Africa.
The products produced by Front Runner 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 and has approximately 320 full-time employees with the headquarters and manufacturing near Johannesburg.
Dometic provides products and solutions for use in, among others, recreational vehicles and a variety of outdoor activities, operating from 22 manufacturing and assembly sites in 11 countries with sales in approximately 100 countries. Therefore if you have any affiliation to the outdoor lifestyle then you need to know about these tow brand.
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.
It has also been reported that the transaction 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