AUSTIN-BASED YETI PUTS PLANS FOR IPO ON ICE
Austin-based Yeti Holdings Inc. has reversed course on a planned initial public offering of stock.
In a letter to the U.S. Securities and Exchange Commission, Yeti CEO Matthew Reintjes says the decision is the result of “market conditions.”
Reintjes’ letter, dated March 23, asks the SEC to return all correspondence related to the IPO.
Reintjes joined Yeti in 2015, coming from Vista Outdoor Inc., where he headed the outdoor products division.
Yeti didn’t respond Monday to a message from the American-Statesman seeking additional details.
Aside from requesting that all fees paid thus far to the agency be credited “for future use,” the letter to the SEC gives no indication of if or when Yeti might choose to again pursue an IPO.
Yeti, known for its high-end coolers and tumblers, first filed for an IPO in July 2016. Documents at the time didn’t spell out how many shares the company hoped to sell or how much money it was looking to raise. It also didn’t set a timeline for the IPO.
The company had planned to trade under the ticker symbol YETI on the New York Stock Exchange, according to securities filings.
Proceeds from the IPO were expected to pay down debt and fund business operations, company executives said at the time.
Yeti was founded in Austin in 2006 by brothers Roy Seiders and Ryan Seiders. The company’s revenue has risen dramatically in recent years, reaching $468.9 million in 2015, according to SEC filings.
In a post on the Yeti website, the Seiders brothers – both avid outdoorsmen – said they were motivated to create their own line of products because “the coolers available at the time just weren’t up to our outdoor adventures – the handles would break, the latches would snap off, and the lids would cave in.
“Not only was it a hassle to replace our coolers after each season, but also these cheaply built, ordinary ice chests were limiting our good times. And that frustration led us to a solution.”
Yeti’s products have become extremely sought after, prompting many companies to create similar ones. That has led to a number of trademark infringement lawsuits in federal court against companies such as RTIC, Axis Cups, Bayou Ice Boxes, Mammoth Coolers, Home Depot and even Walmart.
Looking to take advantage of its popularity, Yeti opened a flagship retail store on South Congress Avenue last year, offering an assortment of its products for sale, plus personalization services. The shop also features a bar that has become a gathering spot for locals and tourists alike.