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OtterBox, the manufacturer of durable smart phone cases, is being put up for sale, according to a report by Reuters. The company has hired Goldman Sachs to handle the transaction and is asking for more than $2.5 billion. A company spokesperson declined to comment on the rumored sale.
Fort Collins-based OtterBox makes thick and durable plastic phone cases for nearly every type of smart phone manufacturer including Apple, Samsung, Blackberry, LG, and HTC. Moody’s reports that 75 percent of the company’s sales come from iPhone cases. The company claims to be the number one selling case for phones in the US and Canada.
Though the company is particularly known for waterproof cases, most of its cases are simply water resistant. The cases are particularly useful in protecting touch screen smart phones from shattering. Related to that, as touch screen phone sales have skyrocketed, so too has OtterBox’s revenue.
OtterBox has grew steadily in its early years, but recently revenue accelerated dramatically. In 2010, the company’s revenue was $166.4 million and it employed 247 workers. In 2013, the company’s revenue grew to $923.6 million and the company had over 800 employees.
Last year, Otterbox bought rival case manufacturer LifeProof. Before the purchase OtterBox had gone to Moody's for a credit rating, so it is assumed that the company took on debt to purchase its rival, and that debt will be part of the OtterBox sale. At the time Moody's rated OtterBox for a $400 million loan, $325 which was slated to make purchase LifeProof. The actualy terms of the sale where never disclosed. No committed buyers have come forward for OtterBox but according to sources the company may be sold to a private equity firm.
Chairman Curt Richardson started the family owned OtterBox in 1998 out of his garage after running a tooling and molding business for 17 years. The first product he built was a waterproof box for outdoorsmen. The company name came at his wife’s suggestion, as the dry box’s watertight abilities reminded her of an otter’s waterproof fur. Since its founding the company has evolved and now focuses specifically on protective phone cases.
The company has become a key influencer and job creator in the Ft Collins community. Just this past Spring, Otterbox’s spinoff Blue Ocean Enterprises awarded $250,000 in a pitch competition to 14 startups during Ft. Collins Startup Week.
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