Husqvarna Group has signed an agreement to acquire Orbit Irrigation, a leading provider of residential watering solutions in North America. Orbit will become part of Husqvarna Group's Gardena Division, establishing a global leader and creating growth opportunities for both brands.
Orbit’s net sales during the last 12 months amounted to approximately USD 320 million with an operating margin slightly below Husqvarna Group average. The purchase price corresponds to an enterprise value of USD 480 million on a cash and debt-free basis and will be financed through existing cash and undrawn credit facilities.
“We now form a clear global market leader within residential watering when combining Orbit’s North American business with Gardena Division’s strength in Europe. We will continue to build on Gardena’s and Orbit’s successful developments. This provides an excellent position and the scale to continue to lead and transform the market towards smart, sustainable gardening solutions,” says Henric Andersson, President and CEO of Husqvarna Group.
Orbit, based in Salt Lake City, Utah, has approximately 300 employees and generates over 95% of its revenues in North America, where Gardena’s presence today is limited. The Orbit product offering includes watering equipment sold through retail, garden centers, e-commerce and professional channels. In addition, the company's B-hyve® suite of smart products, with 1.4 million connected devices, helps consumers conserve water, promote plant health and save money.
“The acquisition of Orbit provides Gardena access to strong go-to-market capabilities and operations infrastructure in North America,” says Pär Åström, President of the Gardena Division. “This will enable us to grow Gardena over time as a premium garden technology brand across North America, through our offering of robotic mowers, smart watering solutions and gardening tools. The combination of Orbit and Gardena also enables accelerated growth for Orbit, leveraging Gardena's innovation capability and broad product portfolio.”
The transaction is expected to close before year-end 2021 but remains subject to customary regulatory approval. Orbit is currently a portfolio company of Platinum Equity.
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