Spanish pool parts maker acquires US company in $245M deal

Sabadel, Spain-based Fluidra SA, a manufacturer of pool and wellness products, acquired Custom Molded Products (CMP) of Newnan, Ga., for $245 million to quickly enter the spa components market and to offer new and complementary pool products.

Fluidra, which is listed on the Spanish stock exchange and owned in part by founding family members and Rhone Capital, paid cash and used debt facilities in the deal with seller Tenex Capital Management. The transaction is expected to be accretive from day one.

The addition of a U.S. company with 2020 sales exceeding $109 million, strong brands in the recreational water industry and manufacturing expertise will expand growth opportunities for Fluidra, according to company officials.

Founded in 1969, Fluidra serves the residential and commercial pool markets. The company generates sales of 1.3 billion euros ($1.5 billion) with 5,500 employees at 34 production facilities.

CMP, which was founded in 1989, makes pool products like skimmers and valves as well as spa jets and decorative LED lights, waterfalls and bubblers for spa designers, pool builders, bath manufacturers and retailers.

In addition to its base in Georgia, CMP has a manufacturing plant in Shanghai and distribution centers in California, Netherlands and Australia.

The CMP acquisition gives Fluidra instant entry into the attractive spa components market segment, which made up 49 percent of CMP sales last year.

Fluidra raised its 2021 guidance based on the expected sales from CMP, which is a fast-growing business with last year's sales surpassing $109 million, according to a six-page online investor presentation. The revised guidance calls for sales growth of 12 percent to 15 percent, which is up from 6 percent to 9 percent, and the margin for earnings before interest, taxes, depreciation and amortization to remain at 22.5 percent to 23 percent.

With the acquisition, Fluidra also will be able to rapidly expand its offering in other strategic categories, such as alternative sanitizers and appliances.

"CMP is a great fit — commercially, operationally and culturally — and a valuable extension to Fluidra's existing North American operation," Fluidra CEO Bruce Brooks said in a March 10 news release. "This acquisition allows us to expand our product portfolio in strategic areas to better meet customer demand, as well as by entering the new spa OEM market."

The CMP team and its base of operations will remain in Georgia.

"We are thrilled to be joining Fluidra and recognize this as a tremendous growth opportunity," CMP CEO Tom Moore said in the release. "With their established and trusted reputation in the industry, we are confident that this will position both Fluidra and CMP for continued success in the years ahead."

Fluidra will draw from its integration of Zodiac Pool Solutions to achieve synergies, Brooks said. The investor presentation identifies revenue synergies with CMP of at least $10 million and cost synergies of at least $7.5 million by the end of 2023 following a one-off investment of $10 million during the next three years.

Fluidra merged with Zodiac in July 2018.