Platinum Equity announced the signing of a definitive agreement to sell Orbit Irrigation to Husqvarna Group in a transaction valued at approximately $480 million. Orbit will become part of Husqvarna Group’s Gardena Division.
The transaction is expected to close before year-end 2021, subject to customary regulatory approval.
Orbit, based in Salt Lake City, Utah, has approximately 300 employees and generates over 95% of its revenues in North America. 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 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’s ownership that prioritized investing in Orbit’s smart watering technology, diversifying its product portfolio and implementing operational improvement initiatives throughout the organization. Orbit’s revenue increased approximately 75% and the company doubled its pro forma adjusted EBITDA in less than three years.
Expanding Orbit’s B-hyve ecosystem, which comprises a comprehensive suite of connected smart water and irrigation management tools, was a core element of the transformation plan. By investing in new B-hyve products, app development and continuous innovation, the total number of B-hyve connected devices has increased from approximately 220,000 in 2019 to more than 1.4 million today.
In addition to investing in the company’s core product portfolio, Platinum Equity also helped establish a robust M&A pipeline.
In June 2020, Orbit acquired Bond Manufacturing, a manufacturer and distributor of irrigation and garden products, including hose and watering devices.
Courtesy of Platinum Equity.