Dometic Acquires Kampa
Friday, 07, Dec 2018 01:30
By William Coleman
We met the Kampa team at the October NEC Motorhome and Caravan Show and they did not get a moment's rest due to their large range of outdoor living accessories. Following on from some recent success they have now been acquired by Dometic, on December 3rd, to strengthen their already impressive portfolio.
Kampa, for those who do not know, are a fast growing outdoor leisure brand with focus on innovative awning and lightweight tent products and accessories to the outdoor living industry with a leading position in the UK.
The company is expected to report sales of £40 million and EBITDA of £7 million in 2018. Aftermarket sales account for 100% of revenue. The business operates with a small fixed asset base which requires limited Capex each year.
Kampa has an asset light set up including outsourced manufacturing and a central warehouse in the Netherlands covering the distribution across Europe. Kampa was founded in 2006 and is based in Essex, UK.
With the acquisition of Kampa, Dometic significantly broadens the Retail and Aftermarket offering in EMEA, with good potential for further expansion and profitable growth.
Retail and Aftermarket expansion has been a strategic priority for Dometic, as it offers attractive market dynamics, strong earnings potential and good opportunities for further expansion. Kampa fulfils all prerequisites that Dometic has set for acquired expansion, with proven profitable growth, leading market positions and strong management.
"I am pleased to welcome Kampa and its employees to Dometic. The acquisition is part of our strategy of strengthening our aftermarket position through complementary products and strong market presence. Kampa complements our product portfolio and strengthens our global offer to make Dometic even more relevant to our current and future customers, "says Juan Vargues, President and CEO of Dometic.
"We are today the market leader in inflatable awning room and tent technology in the UK, with a clear focus on easy use for our customers. In Dometic we have found an incredibly good home where we can build and accelerate our international expansion," says Myles Salmon, Managing Director at Kampa.
Under the terms of the agreement, Dometic pays a cash purchase price of £50 million for Kampa on a cash and debt free basis. In addition, there is a maximum earn-out element of £8.5 million based on delivery of financial targets in 2019 and 2020.
The transaction is immediately accretive to Dometic's operating margin and EPS. Synergies are expected to be limited.
The acquisition is fully financed via cash on hand. Leverage will be impacted with around 0.1x. Dometic maintains its financial leverage target (net debt / EBITDA) of around 2x. Dometic intends to maintain its dividend policy to distribute at least 40 percent of net profit.