Dometic Group has reached an agreement regarding a new ownership structure and financing

 Dometic’s majority owner – BC Partner – and a bank consortium led by Mizuho have reached an agreement with the result that the Dometic Group will have a new ownership structure. The bank consortium will be the principal owner with 70 percent of the shares. The agreement will significantly lower Dometic’s debt and interest expenses. With the decision on ownership and financing, the Group’s future existence and competitiveness is guaranteed.

The agreement means that 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 will also obtain an expanded credit facility of SEK 400 M for more aggressive market investments.

The banks will become the principal owners 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. A representative from the industry will act as Chairman.

Dometic has been severely affected by the global recession. At the same time, the Group’s debt has been too high. The caravan and motor home industry, as well as the leisure boat industry, have reduced production by between 30 and 50 percent. That had a severe impact on Dometic and forceful measures were required to adapt the Group’s costs to the prevailing market climate. Over the past year, costs were reduced by about 35 percent.

Despite this totally changed market situation, Dometic’s business is 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). 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.

 “Dometic is fundamentally an excellent company with completely unique market positions won through technical advances and excellent customer relations. 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,” says Dometic’s 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.

For further information, please contact:
Rutger Wachtmeister, Marketing Director, Dometic Holding AB. Mobile: +46 703 24 20 46, e-mail: rutger.wachtmeister@dometic.se

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Dometic Group is a customer-driven, world-leading provider of leisure products for the caravan, motor home, automotive, truck and marine markets. We supply the industry and after market with a complete range of air conditioners, refrigerators, awnings, cookers, sanitation systems, lighting, mobile power equipments, comfort – and safety solutions, windows, doors and other equipment that makes leisure life more comfortable away from home. Dometic Group supplies a wide range of workshop equipment for service and maintenance of built-in air conditioners.
Dometic Group also supplies refrigerators that are specially designed for use in hotel rooms, offices and for storage of medical products, as well as wine. Dometic Group’s products are sold in nearly 100 countries and are primarily manufactured in own plants around the world. For further information, visit www.dometic.se.

 


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