EQT, the private equity firm that owns RV and pleasure boat industry supplier Dometic Corp., plans an initial public offering (IPO) of 15.7 million shares of Dometic stock next month. If successful, the Dometic shares would trade on the Stockholm Stock Exchange, according to the Financial Times of London.
EQT, based in Solna, Sweden, plans to sell a 51% stake in Dometic to the investing public.
Executives at EQT hope the Dometic shares will sell for 190 to 240 Swedish kronor per share, or $25.16 to $31.79 in U.S. currency, at current exchange rates. One kronor is worth about 13.2 cents in U.S. currency.
The firm plans to use the proceeds to pay down debt and provide funding for possible acquisitions.
Dometic employs 4,000 people worldwide and its sales revenue in 2002 amounted to 6.38 billion kronor, or about $845.5 million. Dometic’s pre-tax operating margin was 15% last year, according to the Financial Times.
EQT acquired Dometic in July 2001 from Swedish home appliance manufacturer Electrolux AB. For all of 2001, Dometic’s global sales revenue totaled 5.68 billion kronor, or about $752.3 million at current exchange rates.
Sales revenue for Dometic, whose largest markets are North America and Europe, increased 12% between 2001 and 2002 because the Sept. 11, 2001, terrorist attacks discouraged air travel and encouraged RV travel, Dometic CEO Sven Stork said.
Dometic’s primary businesses include refrigerators, air conditioners, heat pumps and awnings specially designed for use in RVs. Dometic entered the leisure marine refrigeration and air-conditioning markets when it acquired the U.S. firm, Taylor Made Environmental in July.
In 2002, Dometic purchased SeaLand, a major supplier of sanitation systems for pleasure boats, from Taylor Made.
EQT, Dometic’s parent, is funded by Investor AB, part of Sweden’s Wallenberg Group. Wallenberg has significant investment positions in other Swedish companies that compete in global markets, including Electrolux and Ericsson, the mobile-phone company, and SAAB, an automobile and aerospace products manufacturer.