Home Manufacturer fund Platinum Equity to sell Orbit Irrigation to Husqvarna Group

Platinum Equity to sell Orbit Irrigation to Husqvarna Group

4
0

Sale of smart irrigation technology solutions provider follows successful transformation program

Posted: October 26, 2021 @ 2:05 am EDT|Update: 3 hours ago

LOS ANGELES, October 26, 2021 / PRNewswire / – Platinum Equity today announced the signing of a definitive agreement to sell Orbit Irrigation to the Husqvarna Group in a transaction valued at approximately $ 480 million. Orbit will be part of the Gardena division of the Husqvarna group.

Platinum Equity today announced the signing of a definitive agreement for the sale of Orbit Irrigation to the Husqvarna Group.

The transaction is expected to be finalized before the end of 2021, subject to customary regulatory approval.

Orbit, based at Salt Lake City, Utah, has around 300 employees and generates more than 95% of its turnover in North America. Orbit’s product offering includes sprinkler equipment sold through retail, garden centers, e-commerce and professional channels. Additionally, the company’s B-hyve® smart product suite helps consumers conserve water, promote plant health, and save money. Platinum Equity acquired Orbit in February 2019.

The sale is the culmination of a transformation program under Platinum Equity ownership that has prioritized investing in Orbit’s smart sprinkler technology, diversifying its product portfolio and bringing implementing operational improvement initiatives across the organization. Orbit’s revenue increased by approximately 75% and the company doubled its pro forma adjusted EBITDA in less than three years.

“Orbit’s success is the result of a strong partnership with the company’s management team and hard work by dedicated employees at all levels of the organization,” said Jacob Kotzubei, Platinum Equity Partner. “We have deployed the full suite of M&A and Platinum’s operational toolkit in the service of transforming the company into an industry leader, and we are proud of all the company has accomplished. . “

The expansion of Orbit’s B-hyve ecosystem, which includes a full suite of smart, connected water and irrigation management tools, was a central part of the transformation plan. By investing in new B-hyve products, application development and continuous innovation, the total number of B-hyve connected devices has grown from around 220,000 in 2019 to over 1.4 million today. .

“Platinum has helped Orbit move from a traditional consumer goods company to a provider of innovative technologies,” said Orbit CEO Stuart Eyring. “They also helped us put in place the systems and infrastructure to facilitate our growth and transition to a true market leader. Today we are well prepared to join forces with the Gardena division of the Husqvarna Group, one of the world’s leading brands of innovative gardening products.

In addition to investing in the company’s commodity portfolio, Platinum Equity has also helped build a strong M&A pipeline.

In june 2020, Orbit acquired Bond Manufacturing, a manufacturer and distributor of irrigation and gardening products, including hoses and sprinklers.

“It was important not only to invest in Orbit’s core product portfolio, but also to diversify the company’s revenue streams across customer channels and end-market applications,” added Platinum Equity’s Nick fries, who led the Orbit investment for the company’s Small Cap team. “Orbit is now a leading omnichannel provider of water management and gardening solutions, with a very bright future. “

Mr. Eyring said the Platinum Equity investments made to transform the business were not only good for the business, they were good for the environment.

“The availability of fresh water is one of the most vital resource issues facing the world today,” said Mr. Eyring. “Developing the use of smart irrigation products promotes conservation and more efficient use of natural resources. With over 62 billion gallons saved to date, our comprehensive suite of smart technologies will continue to benefit the environment. “

Moelis & Company LLC and Guillaume Blair & Company, LLC serve as financial advisers to Platinum Equity on the sale of Orbit. Gibson, Dunn & Crutcher LLP is legal counsel to Platinum Equity on the transaction.

About platinum stocks
Founded in 1995 by Tom Gorès, Platinum Equity is a global investment firm with more than $ 25 billion of assets under management and a portfolio of approximately 50 operating companies that serve clients around the world. The company is currently investing with Platinum Equity Capital Partners V, a 10 billion dollars global buyout fund and Platinum Equity Small Cap Fund, a $ 1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and transactions – a branding strategy she calls M&A & O® – acquire and operate companies in a wide range of business markets including manufacturing, distribution, transportation and logistics, equipment rental, metals related services, media and entertainment, technology, telecommunications and other industries. Over the past 25 years, Platinum Equity has made more than 250 acquisitions.

About orbit
Orbit’s mission is to bring smart technology to homeowners, landscapers and farmers around the world. The company serves markets spanning six continents and 40 countries, and has been a global leader in the design and construction of innovative water optimization products for decades. For more information, visit www.orbitonline.com.

Platinum Equity Logo (PRNewsfoto / Platinum Equity)
Platinum Equity Logo (PRNewsfoto / Platinum Equity)

View original content to download multimedia:

SOURCE Platinum Action

The above press release has been provided courtesy of PRNewswire. The views, opinions and statements contained in the press release are not endorsed by Gray Media Group and do not necessarily state or reflect those of Gray Media Group, Inc.