(New York, NY) – Cortec Group (“Cortec”), a New York based private equity firm which invests in middle-market consumer, healthcare, specialty manufacturing, service, and distribution businesses, announced that on June 15, 2012 its affiliate, Cortec Group Fund V, L.P. (“Cortec Fund V”), acquired YETI Coolers, LLC (“YETI” or the “Company”) in partnership with YETI’s founders, Roy and Ryan Seiders. Terms of the transaction were not disclosed.
Based in Austin, Texas, YETI is the leading designer and marketer of premium, rotationally molded ice chests and coolers sold under the YETI® brand name. The Company was founded in 2006, and virtually created the market for premium coolers by designing an extremely durable product with superior insulation properties for a variety of end markets and uses. YETI’s products are sold throughout the U.S. by a broad range of leading national, regional and local retailers.
“Since inception, YETI has generated exceptional growth and profitability, driven by its consistently high quality, superior performance characteristics and authentic brand. The Company’s rapid growth, current momentum and future prospects are incredibly exciting. In particular, YETI anticipates introducing innovative, value-added new products which capitalize on management’s proven design capabilities, further penetrating existing customers and channels, and expanding to new markets,” stated David L. Schnadig, a Managing Partner at Cortec.
Roy Seiders, YETI’s co-Founder and CEO, who will continue with the Company in his current role and retain a meaningful ownership stake in YETI, added “We were seeking a partner who could help foster YETI’s expansion while bringing experiences and resources (beyond just their capital) to support the Company as we face the opportunities and challenges that come with growth.” He further stated that “Cortec’s track record of successfully investing in entrepreneur-led high-growth businesses, as well its relevant knowledge of our sourcing and manufacturing processes was extremely important to me and my brother Ryan.” Ryan Seiders, YETI’s co-Founder and President, who will also continue in his current position and remain a material shareholder, added, “We are enthusiastic about this new partnership, both as senior managers of the Company and continuing owners in the business. We really like the Cortec guys and expect to learn a lot, work hard and have a lot of fun together.”
The YETI acquisition represents Cortec Fund V’s first platform investment. Cortec Fund V had its final closing in 2011 with $620 million in total committed capital.
About YETI Coolers, LLC
Founded in 2006, YETI is the leading designer and marketer of premium, rotationally-molded coolers, accessories and related gear sold under the YETI® brand. The Company has experienced rapid growth and holds the #1 market position in the premium cooler category. YETI currently sells to a broad-based “enthusiast” customer group through a broad range of national, regional, and local retailers serving a variety of end markets, including specialty hunting and fishing, outdoor sporting goods, hardware, farm and ranch supply, and oilfield services, among others. The Company’s authentic outdoor lifestyle brand is revered by a passionate base of consumers who appreciate the unmatched performance and toughness of YETI’s rotationally molded premium coolers. For additional information, please visit www.yeticoolers.com.
About Cortec
Founded in 1984, Cortec acquires high value-added, middle-market consumer, healthcare, specialty manufacturing, service, and distribution businesses with leadership positions in their market niches from owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Cortec currently manages over $1 billion in its two active funds and targets platform acquisitions with enterprise values of $30 million to $300 million and smaller follow-on acquisitions. Additional information about Cortec can be found at www.cortecgroup.com.
