There is big news in the world of overlanding today: Dometic has entered into an agreement to acquire the South African company Front Runner Vehicle Outfitters in a move to diversify their offerings while simultaneously broadening their distribution channels worldwide.
The move comes after Dometic, a company that is already a household name in the world of vehicle-based travel, identified vehicle-based outdoor recreation as an area with big potential for growth. Dometic’s move to bring Front Runner’s broad portfolio of products (which netted $35-million in the last fiscal year) under their umbrella could have many positive implications for both companies going forward.
“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 President and CEO of Dometic Juan Vargues.
The acquisition 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.
Read the original press release here.
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