Weber IPO: Everything you need to know about Weber

Weber is a global leader in outdoor grills and is now set to go public with a New York Stock Exchange listing that could make for a $5 billion valuation. Here’s our rundown of the business following the Weber IPO.

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Weber IPO: What do we know about the Weber IPO?

The Weber IPO occurred on the New York Stock Exchange on August 5 under the ticker WEBR – with the shares priced initially at $14, below the planned range of $15-$17. The company raised $250 million through the sale of almost 18 million shares. This meant a company valuation of around $4 billion post listing, according to reports.

Underwriters for the transaction included Bank of America Securities, Goldman Sachs, and JP Morgan.

Underwriters for the transaction include Bank of America Securities, Goldman Sachs, and JP Morgan.

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How to trade Weber shares

When Weber lists, you’ll be able to trade Weber shares in the same way you would any other publicly-traded company on the stock market.

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How much is Weber worth?

Weber is worth some $4 billion following its listing in August 2021.

Prior to the IPO, the business was worth around $2.4 billion as of November 2020, based on its fundraising round that month of $35 million.

What does Weber do?

Weber-Stephen Products is an Illinois, US-based manufacturer of outdoor grills and grill accessories. The company has captured almost a quarter of the global grilling market, according to Frost & Sullivan data.

The original company was started in 1893 as Weber Bros. Metal works, but it was only in the following century that sheet metal shop owner George A Stephen was to build a round charcoal kettle grill in an attempt to improve the brazier he cooked with at home.

The resulting product was put on sale in 1952, and was so successful Stephen was given the opportunity to start a barbecue division of Weber Bros, eventually buying out the factory later that decade and changing the name to Weber-Stephen Products Co.

In the 1980s, the company opened a range of Weber Grill steakhouse and BBQ restaurants, many of which are still open today. In 2010, BDT Capital Partners took a majority stake in Weber-Stephen products, with the restaurants remaining solely owned by the Stephen family.

Today, the company continues to sell large volumes of its products in the US and abroad, with revenues for 2020 of $1.5 billion, up from $1.3 billion the previous year. This was largely helped by the coronavirus pandemic encouraging home cooking over eating out. Weber-Stephen Products employs more than 1,200 people as of August 2021.

Who are Weber’s competitors?

Weber’s main competitors are the likes of Fuego, Nexgrill, and Canadian operator Broil King.

Traeger, which has beaten Weber to IPO, enjoys a substantial share of the pellet grill/smoker market, which is a space also occupied by Weber in addition to the latter’s charcoal and gas grill offering.

How does Weber make money?

Weber makes money through the sale of its grills, which range from $40 portable affairs, through to $80 wood pellet grills, to top-of-the-range $2,000 burners such as the Summit E-470 Gas Grill. The company also offers accessories such as grate scrubbers, grill covers and cooking appliances.

What is Weber's business strategy?

Weber’s business strategy in recent times has had to be sufficient to satisfy the increased demand brought upon the company by the surge in home cooking during the coronavirus outbreak. CEO Chris Scherzinger has highlighted the company’s application and upgrading of technology as being key to managing demand. In particular, its enterprise resource planning software has been cited as instrumental in facilitating business-critical tasks ranging from sales and operations to back office functions.

Furthermore, the introduction of the company’s Weber Connect technology within its smart gas grills will enable customers to enjoy WiFi and smartphone-enabled precision cooking to improve meal quality. In a bid to strengthen this technological proposition and set the company apart from rivals, Weber acquired home automation and smart appliance company June in 2021. The company has also released a free app to assist with timings to enhance the grilling experience.

While moving to upgrade its technology to target a new generation of tech-savvy customers, the company has also seen a disproportionate boost in sales of the classic kettle grills, highlighting the importance of not neglecting those customers seeking more traditional designs.

Following the company’s listing, speculators will be interested to see where the proceeds of the IPO go, and if the business is able to sustain its stellar performance as global lockdowns ease and restaurants take custom away from the home-cooking market.

Is Weber profitable?

Weber is currently profitable according to its latest business accounts, with some $89 million in net earnings on revenues of $1.5 billion for the fiscal year ending September 2020. The profits were up from $50.1 million in 2019.

Who owns Weber?

The ownership of Weber is split between the Stephen family and the investment group BDT Capital Partners, which bought a majority share in 2010.

Directors of Weber

  • Chris Scherzinger – Chief Executive Officer
  • Jim Stephen – Executive Chairman
  • Bill Horton – Chief Financial Officer
  • Brooke Jones – Corporate VP, Marketing

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