A Swedish company will buy the Katy cooler manufacture Igloo Products for $677 million as it seeks to tap into the growing market for outdoor recreation and sports. Igloo, https://igloocoolers.com, one on the nation’s largest makers of coolers and ice chests, reached a deal last week with Dometic, https://www.dometic.com/en-usa supplier of travel and recreation gear, according to Dometic. The acquisition will strengthen Dometic’s outdoor offerings and distribution network in North America, the Swedish company said.

The outdoor sports and recreation market has boomed during the pandemic as people look for COVID-safe ways to stay active. The global market for coolers and outdoor drinkware is growing, too, reaching $8 billion a year, Dometic executives said in a teleconference Friday. The cooler and ice chest segment grew 20 percent between July 2020 and July 2021, said Matt Powell, vice president and senior industry adviser for market research firm NPD Group.

Igloo grew faster than its main competitor, Yeti of Austin, during the pandemic, Powell said. Igloo, which has about 1,100 employees, reported $401 million in revenue over the last year, according a news release. The deal is expected to close by the end of the year. “I am extremely proud of everyone on our team who has worked so hard in building Igloo into an iconic American brand.” Dave Allen, Igloo’s president and chief executive, said in a statement. “As part of the Dometic Group, we look forward to combining our resources in order to accelerate innovation and growth across the globe.” Powell said he expects Dometic will provide the money that Igloo needs to grow as people look for ways to extend their lives into their backyards. Dometic reported sales of about $1.9 billion (16.2 billion Swedish krona) in 2020.

“With this brand doing quite well right now, they’re going to need more capital to continue that growth,” he said. “This should help them grow even more quickly.” Igloo will benefit from Dometic’s global reach, which will allow the Katy company to expand its direct-to-consumer business — shipping directly to customers who order online — into international markets., Dometic executives said. Igloo just began branching into direct sales to consumers over the past 18 months of the pandemic, Dometic executives said, meaning there’s plenty of room to grow.

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Juan Vargues, Dometic’s CEO, said he was attracted to Igloo’s proximity to North American markets and impressed at how prominent the brand was inside American stores. “The target with Igloo is really to keep the brand,” he said. “We see the cooling box market as a very attractive growth market,” he said. . Igloo is owned by the private equity group ACON Investments, which acquired the company in 2014, according to the release. amanda.drane@chron.com https://www.houstonchronicle.com/business/article/Katy-based-Igloo-to-be-bought-by-Swedish-company-16473371.php  

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