Southlake-based lifestyle company Solo Brands goes public at $2.1 billion valuation

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A local lifestyle brand from North Texas benefits from strong consumer habits and e-commerce sales.

Solo Brands debuted on the New York Stock Exchange on Thursday, the share price rose to the high end of the expected range and valued the company at $ 2.1 billion. The company raised $ 219 million in an offering of 12.9 million shares priced at $ 17.

It sells products ranging from what is known as a “virtually smoke-free” fire pit and high-performance outdoor clothing to inflatable paddleboards and folding kayaks. The company had sales of $ 225 million in the first half of 2021, according to a filing with the US Securities and Exchange Commission.

The company’s portfolio includes Solo Stove, clothing brand Chubbies, Oru Kayak and paddleboard maker Isle. The company started with the Solo Stove when it was founded by two brothers in a Fort Worth garage in 2011. It made three acquisitions earlier this year and renamed it Solo Brands. With Traeger Inc. and Weber Inc., two other grill manufacturers went public this year.

Solo Brands’ exhibition in front of the stock exchange with several of its outdoor products on Thursday.(Courtney Crow / NYSE)

“This is a huge highlight for our customers who brought us here,” said John Merris, CEO of Solo Brands, of the company’s IPO.

Outside the stock exchange, where Merris, Solo Brands employees, and NYSE executives rang the opening bell on Thursday, the company hung a banner that read, “For our customers, this is for you. THANK YOU VERY MUCH.”

Since Merris joined the company as CEO in 2018, the workforce has grown from single-digit numbers to 170 in North Texas and an additional 70 in Austin, he said. Prior to joining Solo, Merris was Chief Revenue Officer at Clarus, based in Fort Worth, which makes glass whiteboards.

This is the first time Merris has taken a company public.

“This is the first step in what we expect from our side for the next decade and beyond – this incredible growth and results,” he said.

Solo Brands will move to new headquarters in Grapevine near the north runway at DFW International Airport next month. The 430,000 square meter site includes warehouses, fulfillment areas, 50,000 square meters of offices and a product showroom.

And the roof will feature a huge flame – the company logo – that will be visible to passengers upon landing, Merris said.

Solo Brands hit the headlines earlier this month when it bought Chubbies, an iconic lifestyle apparel brand, for $ 130 million. Merris said Solo was “intrigued” with the company’s online business.

According to one filing, Chubbies increased its annual revenue from $ 2.4 million in 2012 to $ 44.1 million in 2020. Solo Brands sees potential for further growth.

In 2020, more than 80% of Solo Brands’ sales came from consumers who ordered directly through its websites, according to a filing.

“This has been our model since we were founded for the last 10 years,” said Merris of the company’s strong direct sales. “All of the pandemic data really highlighted the great business we were and how much it makes sense in this day and age. It has become so easy for customers to do business with us. “

The individual brands of Solo also have a digital reach in the double-digit million range. Together, they generated around 42 million unique website visits in 2020, and the brands have more than 4.5 million followers on social media, according to one submission.

“It was really about listening to the customer’s voice,” said Merris. “We believe the future of consumer business is built on personal relationships with your customers,” said Merris.

Solo Brands is also expanding internationally. It will focus on Europe and Australia before expanding further into Africa, Asia Pacific, the Middle East and South America. Solo Brands operates three warehouses in the US and one in the Netherlands.

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