Cortec Group announced today that it has acquired YETI Coolers, a designer and marketer of ice chests and coolers, in partnership with YETI’s founders, Roy and Ryan Seiders. The YETI acquisition represents Cortec Fund V’s first platform investment. Cortec Fund V had its final closing in 2011 with $620 million in total committed capital.
“We were seeking a partner who could help foster YETI’s expansion while bringing experiences and resources beyond just capital to support the company as we face the opportunities and challenges that come with growth,” said Roy Seiders, YETI’s co-Founder and CEO.
YETI is a designer and marketer of premium, rotationally molded ice chests and coolers sold under the YETI brand name. YETI currently sells to a broad-based “enthusiast” customer group through a range of national, regional, and local retailers serving a variety of end markets, including specialty hunting and fishing, outdoor sporting goods, hardware, farm and ranch supply, and oilfield services, among others. The company was founded in 2006 and is based in Austin, TX (www.yeticoolers.com).
“Since inception, YETI has generated exceptional growth and profitability, driven by its consistently high quality, superior performance characteristics and authentic brand. The company’s rapid growth, current momentum and future prospects are incredibly exciting. In particular, YETI anticipates introducing innovative, value-added new products which capitalize on management’s proven design capabilities, further penetrating existing customers and channels, and expanding to new markets,” said David Schnadig, a Managing Partner at Cortec.
Harris Williams & Co. acted as the exclusive advisor to YETI. The transaction closed on June 15, 2012, and was led by Cheairs Porter from the firm’s Richmond office and Ryan Budlong from the firm’s Minneapolis office.
Cortec Group invests in middle-market specialty manufacturing, service, healthcare and distribution businesses with enterprise values of $30 million to $300 million. Cortec currently manages over $1 billion in its two active funds. The firm was founded in 1984 and is based in New York, NY (www.cortecgroup.com).
“We are enthusiastic about this new partnership, both as senior managers of the company and continuing owners in the business. We really like the Cortec guys and expect to learn a lot, work hard and have a lot of fun together,” said Ryan Seiders, YETI’s co-Founder and President.
