Dometic acquires Front Runner Vehicle Outfitters

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On May 20, 2021, Dometic entered into an agreement to acquire Front Runner Vehicle Outfitters – a global provider of high-qualitive products for the outdoor market headquartered in South Africa.

SUMMARY

This transaction strengthens Dometic’s product offering and distribution network for the vehicle based outdoor market.
Net sales of Front Runner Vehicle Outfitters in the last fiscal year were approx. USD 35 million with a good operating margin.
The products are sold on four continents through their own B2C e-channels (appr. 50% of total sales) and through more than 600 dealers.
The transaction is expected to be accretive to Dometic’s EPS from start.

DESCRIPTION OF FRONT RUNNER VEHICLE OUTFITTERS

Front Runner Vehicle Outfitters is a global provider of high qualitive products for the vehicle based outdoor market. The products include roof racks, rooftop tents, storage products and load bars. The products are sold on four continents through their own B2C e-channels (appr. 50% of total sales) and through more than 600 dealers.

Net sales in the last fiscal year were approx. USD 35 million with a good operating margin.

Front Runner Vehicle Outfitters is privately owned, has approximately 320 full-time employees with the headquarters and manufacturing near Johannesburg, South Africa.

BACKGROUND AND REASONS FOR THE TRANSACTION

Dometic has identified the vehicle based outdoor market as a strong opportunity for growth. Front Runner Vehicle Outfitters, with its offering of high-quality outdoor products, is a perfect fit to Dometic’s existing offering for this market.

"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 Juan Vargues, President and CEO of Dometic.

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.

Source: https://news.cision.com/dometic-group/r/dometic-acquires-front-runner-vehicle-outfitters,c3349905
 
WashingtonTaco said:
Considering Dometic has only been in the "overland space" with fridges for about 5 years. Been in the RV world a long time though.
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Anything “outdoors” is hot hot hot right now. Big companies like Thule and Yakima etc, and now Dometic, are gobbling up smaller companies to capitalize on this.
 
They've been on a serious buying spree lately. Shame they're cutting back on their dealers support at the same time. Will be interesting to see how everything shakes out down the road.
 
Dean said:
They've been on a serious buying spree lately. Shame they're cutting back on their dealers support at the same time. Will be interesting to see how everything shakes out down the road.
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I suspect, as has already started, marketing efforts will change for FRO, Zamp, and Camp-Chef. The hope is, at least on my part, that manufacturing, product development, and quality of product will be retained by the newly-purchased companies, and that they'll be allowed to operate with a level of autonomy while under the Dometic umbrella.

All very interesting to watch and be part of.
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What I'm affraid is that Dometic will change the quailty of these other companies products. I'm a a fan of Front Runner Outfitters & have several of their products. The other issue that worries me Dometic buying up all these other companies & like any company that become all too powerful makes foolish decisions. I seen this in the firearm industry watching companies buy others & phase lines or the entire company out.
 
ArkansasDon said:
What I'm affraid is that Dometic will change the quailty of these other companies products. I'm a a fan of Front Runner Outfitters & have several of their products. The other issue that worries me Dometic buying up all these other companies & like any company that become all too powerful makes foolish decisions. I seen this in the firearm industry watching companies buy others & phase lines or the entire company out.
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I filled out a long survey today that FRO sent me and said pretty much that same thing.

Happens far too often--though not always--that newly purchased companies loses their identity, quality, and reputation over time as corporate decisions are made with only bottom-liners calling the shots.

Time will tell, though I think if enough end-users express concern, voices may be heard.
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Road said:
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I suspect, as has already started, marketing efforts will change for FRO, Zamp, and Camp-Chef. The hope is, at least on my part, that manufacturing, product development, and quality of product will be retained by the newly-purchased companies, and that they'll be allowed to operate with a level of autonomy while under the Dometic umbrella.

All very interesting to watch and be part of.
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We're a Dometic Dealer and already seeing some negative results. To start with, Dometic is shifting more to direct-to-consumer sales meaning we're no longer getting product. But then, they throw us out there as a service center - which we're not - and now we're getting a bunch of calls we can't answer. It's dumb.
 
Dean said:
We're a Dometic Dealer and already seeing some negative results. To start with, Dometic is shifting more to direct-to-consumer sales meaning we're no longer getting product. But then, they throw us out there as a service center - which we're not - and now we're getting a bunch of calls we can't answer. It's dumb.
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Mission creep....
 
Dean said:
We're a Dometic Dealer and already seeing some negative results. To start with, Dometic is shifting more to direct-to-consumer sales meaning we're no longer getting product. But then, they throw us out there as a service center - which we're not - and now we're getting a bunch of calls we can't answer. It's dumb.
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thats a bumber Dean. It goes to show that taking care of their dealers\licensee's doesn't matter.

It reminds me when I had my business in the custom firearm re-finishing & I was licensed with several major brand camo companies to use their product exclusively & legally to print it on firearms parts. I paid a anual license fee, had to carry a million dollar bond, proof of FFL, having insurance on their products, had to purchase large quantities, turn in decorators report of what parts printed in camo along with royality fee payments every month. This was only way to have legal legitimate right to print these camo patterns on gun parts what I mentioned above. Things were fine for 17 1\2 years until they started selling small quantities to the DIYer when these hydrographic kits came out, which only aided into illegal dip shops printing royality camo on gun parts for 1\2 the price w\o FFL & the legal means having business, making their tanks from cattle water troughs, working out of garages & small sheds.
We legitimate shops which was 31 of us in the country had the overhead, employees, payroll & taxes, not counting couple hundred thousand in equipment these camo companies didn't realize they were starting a whole new way of illegally processing camo gun parts.
I know I felt betrayed & screwed over. These camo companies wouldn't even hear us, it was all about more money to them & who was going to be the big boy on the block. In time this would only screw us licensee's over financially especially the newer shop owners who had invested $100,000. easily into a business just for the basic's & trying to get their name out in circulation. I know things weren't the same after that & I knew were I stood with these camo companies since I was one of the old timers in the industry. My calling card of retiring came 3 yrs later were I sold out. I was one of the top 5 shops too, I feel for ya Dean.
 
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Talked with a friend a month or so ago that left Front Runner about a year ago. I mentioned I had purchased a Front Runner RTT he stated that all of Front Runners soft goods including RTTs were made in China but the packaging wasn't labeled as such. One has to wonder how long before the racks start being manufactured in China?
 
WashingtonTaco said:
Talked with a friend a month or so ago that left Front Runner about a year ago. I mentioned I had purchased a Front Runner RTT he stated that all of Front Runners soft goods including RTTs were made in China but the packaging wasn't labeled as such. One has to wonder how long before the racks start being manufactured in China?
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I think that practice of “white labeling” or sanitizing the source country is more prevalent than we’d like.

The sad part is that some materials and know how cannot be sourced here. There’s a great song titled “We can’t make it here” by James McMurtry that perfectly captures how we’ve been sold out.

But time marches on. I’ll use Vietnam as an example - most “tactical consumer” soft goods are made there and honestly, they’re becoming a global leader not just based on price but also quality. They’re REALLY really good at sewing bags and such. They filled the void.
 
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