Dometic is a global leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation and Food & Beverage. Sold in ~100 countries, products include items such as air conditioners, refrigerators, awnings, cookers, sanitation systems, and many more.
Domestic's main business is to be an OEM supplier to all the major manufactures of recreational vehicles (RV), leisure boats, trucks, hotels and cruise lines. Dometic's wide product range offers a one stop shop to OEMs. Dometic also has a retail business supplying car accessories, portable refrigerators and other products. After-market sales, largely replacement and upgrade products as well as traded goods, is another important sector for Dometic.
Dometic has 20 production sites located in North America, Europe and Asia.
Market Trends and Drivers
The underlying market drivers for Dometic's products are the global markets for new RVs, leisure boats, trucks, hotel rooms, cruise ships and cars. These are cyclical and sensitive to the general economic climate although the aftermarket tends to be less volatile.
Trends such as more leisure time and affluence also in emerging markets and a growing population of retired but still very active people provide factorable long-term trends for Dometic's products.
EQT previously owned Dometic, between 2001 and 2005, and therefore had in-depth knowledge of its business and market conditions. Especially attractive was Dometic's position in the value chain and its ability to generate high margins. Positive long-term demographic trends were also a factor.
The business plan included a focus on the aftermarket by improving dealer and distributor management. Centralizing purchasing, tax and cash management and a transfer of production volumes to Chinese and Eastern European plants are also in progress.
The plan called for a geographical expansion with new offices or agents in emerging markets and Eastern Europe combined with acquisitions that add new products or new geographic regions.