June 2, 2020 — Cortec Group (“Cortec”), a New York-based private equity firm which specializes in investing in middle-market consumer products and services, healthcare products and services, and specialty distribution businesses in partnership with families and entrepreneurs, is pleased to announce that its affiliate, Cortec Group Fund V, L.P. (“Cortec V”), has sold substantially all of its ownership in YETI Holdings, Inc. (“YETI”) via a series of public market transactions. YETI, based in Austin, TX, is a global designer, retailer, and distributor of a wide variety of innovative outdoor products. YETI’s shares are listed on the New York Stock Exchange under the ticker symbol “YETI”. Additional details on YETI can be found at www.yeti.com and in the company’s public filings at www.sec.gov.
Cortec Co-President and YETI Board of Directors Chair David Schnadig said, “Today is bittersweet for me and for Cortec, as we wind down a partnership that began nearly eight years ago with Roy and Ryan Seiders and a company with around $40 million in revenue and 20 employees. Virtually everything about YETI in 2020 is meaningfully different than when we started and all of it for the better!” Schnadig added, “Driven by our beliefs in the team and the YETI brand, we would have preferred to retain our YETI ownership for many more years. However, we are in the business of returning money to our investors in a reasonable timeframe. In this case, we’re proud of the fact that we generated greater than 25 times invested capital on a gross basis for our limited partners and returned them more than 20 times their original investment on a net basis.
Matt Reintjes shared the following thoughts, “Working with Cortec since Dave recruited me in September of 2015 has been a true partnership. Cortec provided us with mentorship, guidance, capital and other resources, with the objective of a building a bigger, better business that would stand the test of time. We’re genuinely appreciative of all that the Cortec team has brought to the company over the past eight years and wish them continued success with their other portfolio companies.”
YETI completed its IPO and subsequent follow on offerings with capital markets assistance from Solebury Capital, a number of leading investment banks, as well as legal counsel from Jones Day and O’Melveny & Myers, LLP.
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 families, entrepreneurs 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.
