Swedish company Dometic has reached an agreement to acquire Igloo, the U.S.-based manufacturer of passive coolers and drinking vessels. The acquisition is an important step in Dometic’s strategy to grow further in the outdoor industry and creates a strong base for further global growth, the company said. It will also significantly strengthen Dometic’s offering and distribution network for the outdoor market in North America. The purchase price is $677 million on a cash and debt-free basis.

Founded in 1947, Igloo is considered one of the world’s leading manufacturers, with an iconic brand, broad product line and strong consumer focus. Some 92 percent of its net sales occur in the U.S., its products are available in more than 90,000 retail stores worldwide, and it has its own, fast-growing direct sales channel. Annual sales exceed $400 million.

Revenue and cost synergies are expected to drive approximately $50 million in annual EBITDA improvement, to be realized within five years. The transaction is expected to close in Q4 2021, subject to regulatory approvals.