Maax Inc. has agreed to acquire Coleman Spas Inc., an acrylic spa producer based in Phoenix and owned by outdoor recreational products major Coleman Co. Inc., headquartered in Wichita, Kan.
Maax of Ste. Marie de Beauce, Quebec, agreed to pay about US$18 million for the business, which it estimates will generate sales exceeding US$30 million this year. Maax expects to complete the deal by the end of October but it will be retroactive to Oct. 1.
Coleman decided to sell the spa business because it does not fit the firm's core businesses, according to Maureen Bailey, a spokeswoman for Sunbeam Corp., the majority owner of Coleman.
She said Coleman will reinvest proceeds from the sale in its core product lines.
Coleman Spas is the latest in a string of acquisitions in the past few years by Maax, a major bathware producer. In July it agreed to buy Savannah Spa Manufacturing of Maple Ridge, British Columbia.
Coleman's parent, Sunbeam, has been restructuring since its former chairman and chief executive officer, Albert Dunlap, and former chief financial officer, Russell Kersh, resigned in early August amidst allegations of financial irregularities. In late August, Sunbeam announced a new management team, decentralized operations and renewed focus on growth.
New Sunbeam management, including president and CEO Jerry Levin, essentially abandoned Dunlap's policy of massive downsizing.
Officials instead decided to keep open Coleman plants in Maize, Kan., and Pocola, Okla., a First Alert operation in Aurora, Ill., and the Sunbeam plant in Acuna, Mexico. Officials also will delay the closure of a Mr. Coffee facility in Glenwillow, Ohio, until February.
Sunbeam said last month it will restate its audited financial statements for 1997, 1996 and unaudited financial statements for the first quarter of 1998.
Levin said that new management intends to restore Sunbeam's profitability and that the company's cash position is sufficient to meet obligations to suppliers and vendors.
In early August company officials said that Sunbeam had about $300 million in cash on hand and available through credit facilities.