Dometic to acquire Treeline Capital LLC

Dometic Treeline

Mar 7, 2022

Dometic has entered into an agreement to acquire Treeline Capital LLC, a leading provider of value-adding engineered Service & Aftermarket products and Mobile Power Solutions for the North American Marine market under the CDI Electronics and Balmar brands.

SUMMARY

• The acquisition strengthens Dometic’s offering and market presence within the North American market for Marine aftermarket products and solutions, particularly in the fast-growing Mobile Power Solution area.

• Net sales full year 2021 were over US$ 16 million with strong growth and a good operating margin. Approximately 75% of net sales are derived from the Service & Aftermarket channel.

• The transaction is structured as a simultaneous signing and closing and is effective immediately. The transaction is expected to be accretive to Dometic’s EPS from start.
 

DESCRIPTION OF CDI ELECTRONICS AND BALMAR

Through the brands CDI Electronics and Balmar, Treeline Capital LLC is serving the fast-growing demand for Mobile Power Solutions in the Marine industry by offering engine ignition replacement parts, DC charging systems and battery monitoring systems for boats, among other product categories.

CDI Electronics and Balmar’s products are primarily sold in North America, through an extensive network of distributors and Marine aftermarket dealers. The offering also includes a proprietary engine diagnostic software that is licensed and used by more than 1,200 Marine aftermarket dealers across North America.

Net sales in 2021 were over US$ 16 million with strong growth and a good operating margin. Approximately 75% of net sales are derived from the Service & Aftermarket channel.

Treeline has approximately 70 employees and is headquartered in Huntsville, Alabama.

BACKGROUND AND REASONS FOR THE TRANSACTION

Dometic supplies the global marine industry with a wide range of innovative products for both the leisure and professional markets. With a strong market position as a basis and by driving continuous innovation, Dometic has the ambition to increase its presence in the service and aftermarket business with purpose-built products, and by expanding the business into new areas.

The addition of CDI Electronics and Balmar are highly complementary with the existing presence of Dometic in the Mobile Power Solutions area while further increasing Dometic’s presence in the Marine Service & Aftermarket industry. 

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. Treeline will be reported as part of Dometic’s Marine segment. The transaction is structured as a simultaneous signing and closing and is effective immediately.

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