Custom Molded Products (CMP), manufacturer of pool and spa components announced that it has been acquired by Fluidra, a leading pool and spa manufacturer.
CMP is a leading supplier of quality replacement solutions for the pool and spa industry, whose portfolio includes such brands as DEL, Brilliant Wonders, SpaMASTER and Bobé.
Fluidra, a Spanish listed firm, is a global leader in the pool and wellness equipment business. The company operates in over 45 countries and owns some of the industry’s most recognized and trusted brands, including Jandy®, Polaris®, Zodiac®, and more.
According to Tom Moore, CEO of CMP, the acquisition represents a merger of two companies with compatible values.
“Like CMP, Fluidra is committed to being the best partner in the industry for their customers. Our company values, focus on customer experience, operational capabilities and product portfolios align well. Working together we will be able to better serve you through superior service, an expanded product offering, and accelerated delivery capabilities,” Moore said.
The acquisition was valued at $245 million and was fully settled at closing with existing cash and debt facilities. Proforma 2020 leverage is still within the 2x target, while maintaining a strong cash generation profile.
The transaction is expected to be accretive to Fluidra’s Cash EPS from day one.
Fluidra is raising its 2021 guidance based on the expected positive contribution from the CMP acquisition as follows:
• Sales growth from 6-9% to 12-15%
• Cash EPS growth increases from 12-20% to 17-25% With this acquisition, Fluidra will rapidly expand its offering in several strategic growth categories, such as fast-growing alternative sanitizers, white goods to support its Jandy equipment range and dedicated spa equipment, a substantial adjacent segment and opportunity for the company.Additionally, CMP’s broad range of LED solutions and water and fire features will complement and extend Fluidra’s existing portfolio. CMP’s product strengths, coupled with its operational and manufacturing expertise, will help Fluidra accelerate growth by providing its customers with a wider range of pool and spa technologies as well as through increased product delivery capabilities.
According to Bruce Brooks, CEO of Fluidra, CMPis a great fit—commercially, operationally and culturally—and a valuable extension to Fluidra’s existing North American operation.
“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. We intend to draw from our Fluidra-Zodiac integration expertise to successfully achieve the numerous synergies identified,” Brooks said.
Following the acquisition, the CMP team and its base of operations will remain in Georgia.
There will be no immediate changes to either Fluidra or CMP sales, service, support or warranty contacts. This acquisition will have no impact on existing orders or pricing. Customers can continue to reach out to their usual contacts through your usual means of communication.