HUSQVARNA ANNOUNCE AQCUISITION

Husqvarna Group has signed an agreement to acquire Orbit Irrigation, a provider of residential watering solutions in North America.

Orbit will become part of Husqvarna Group's Gardena Division, with the manufacturer saying the acquisition will establish a global leader and creating growth opportunities for both brands.

Orbit’s net sales during the last 12 months amounted to approximately USD 320m with an operating margin slightly below Husqvarna Group average. Husqvarna said in a statement the purchase price corresponds to an enterprise value of USD 480m on a cash and debt-free basis and will be financed through existing cash and undrawn credit facilities.

Henric Andersson, president and CEO of Husqvarna Group said, “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."

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 is limited. The Orbit product offering includes watering equipment sold through retail, garden centers, e-commerce and professional channels. 

Pär Åström, president of the Gardena Division added, “The acquisition of Orbit provides Gardena access to strong go-to-market capabilities and operations infrastructure in North America. 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 transaction is expected to close before year-end 2021 but remains subject to customary regulatory approval.