(New York, NY) — Cortec Group (“Cortec”), a New York-based private equity firm which invests in middle-market distribution, consumer, healthcare, and specialty products and services businesses, is pleased to announce that YETI Holdings, Inc. (“YETI” or the “Company”), a designer, marketer, retailer, and distributor of innovative, branded, premium outdoor products, and a portfolio company of its affiliate, Cortec Group Fund V, L.P. (“Cortec Fund V”), successfully completed an initial public offering (“IPO”) on October 29, 2018 and first follow-on offering of additional shares on May 13, 2019. YETI’s shares are listed on the New York Stock Exchange under the ticker symbol “YETI”.
Under the terms of the IPO, YETI issued 2,500,000 primary shares of common stock, and certain selling shareholders (including Cortec Fund V and its affiliates) sold an additional 13,500,000 secondary shares. The offering price was $18.00 per share. As part of the offering, the underwriters partially exercised their overallotment option. Total gross proceeds from the transaction, including overallotment, were $304.5 million. Proceeds (net of offering costs) to YETI from the sale of primary shares totaled $36.8 million and were used to reduce borrowings outstanding under the Company’s credit facility. Net proceeds (after all offering-related fees and expenses) from the sale of secondary shares, including the overallotment, were $244.6 million and were allocated among the selling shareholders.
In the follow-on offering, certain selling shareholders (including Cortec Fund V and its affiliates), sold an additional 9,500,000 secondary shares. The follow-on offering did not include any primary shares and, therefore, YETI did not receive any proceeds from this offering. The follow-on offering price was $28.50 per share. As part of the offering, the underwriters exercised their overallotment option. Total gross proceeds from the transaction, including the overallotment, were $311.4 million and net proceeds, after all offering-related fees and expenses, were $298.1 million.
Additional details on the IPO and follow-on offering can be found in YETI’s filings at www.sec.gov.
Since Cortec’s acquisition of YETI in June 2012, the Company has grown meaningfully by building its team and infrastructure, broadening its product offering, expanding its served markets and sales channels, and strengthening its brand. David Schnadig, a Managing Partner at Cortec and YETI’s Board Chair, stated, “our investments in YETI’s leadership team, developing new and innovative products that stay true to YETI’s growing brand, and improving systems, processes and controls, have driven YETI’s substantial growth during our ownership, for many years as a privately held business and, more recently, as a publicly traded company. We are excited about the Company’s future prospects.”
Matt Reintjes, CEO of YETI, added, “Cortec’s support of YETI over the past seven plus years has helped transform our Company into what it is today and has positioned us well for success going forward. We look forward to building on this momentum as we continue to expand our customer base, drive product innovation, grow our direct-to-consumer business, and expand internationally.”
Cortec Managing Partners David Schnadig, Jeffrey Lipsitz, and Michael Najjar currently serve on YETI’s eight-person Board of Directors.
About Cortec Group
Founded in 1984, Cortec invests in high value-added, middle-market consumer, healthcare, distribution, and specialty products and services businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.
