Dometic Group reached an agreement regarding a new ownership structure and financing, the company said in a statement.
Dometic's majority owner, BC Partner, and a bank consortium led by Mizuho reached an agreement in which the consortium will be the principal owner with 70 percent of the shares.
Dometic's management and other key personnel will own 25 percent of the shares, and representatives from the board of directors will own 5 percent. Over time, a new board will be appointed with representatives from industry, banks, employee organizations and Dometic's management. A representative from the industry will act as chairman.
The agreement means that Dometic's net debt will be reduced from about SEK (Swedish krona) 13 billion to about SEK 8 billion (8 kronas equals about 1.13 U.S. dollars). At the same time, interest expense will decline by 70 percent from SEK 750 million to SEK 250 million on an annual basis. Dometic also will obtain an expanded credit facility of SEK 400 million for more aggressive market investments.
"Dometic has been severely affected by the global recession. At the same time, the group's debt has been too high. The caravan and motor home industry, as well as the leisure boat industry, have reduced production by between 30 and 50 percent," the company said in a statement. "That had a severe impact on Dometic and forceful measures were required to adapt the group's costs to the prevailing market climate."