Latham Group Acquires Coverstar Central - Latham’s Exclusive Automatic Safety Cover Dealer in 29 States
Latham Group (Nasdaq: SWIM), the largest designer and manufacturer of in-ground residential swimming pools in North America, Australia, and New Zealand, has acquired Coverstar Central, its exclusive automatic safety cover dealer in 29 states. The all-cash transaction, completed on August 2, 2024, is expected to be immediately accretive to earnings.
Coverstar Central, headquartered in Indianapolis, is the largest automatic safety cover dealer and service provider in the U.S., operating six regional distribution and service centers. This acquisition aligns with Latham's strategic priorities, aiming to accelerate growth and adoption of automatic safety covers. The vertical integration is expected to result in expanded Adjusted EBITDA margins.
Latham also sees opportunities to leverage Coverstar Central's relationships with pool builders to increase awareness and conversion to fiberglass pools. The company plans to continue working with its other dealers in the remaining 21 states and Canada.
Latham Group (Nasdaq: SWIM), il maggiore progettista e produttore di piscine residenziali interrate in Nord America, Australia e Nuova Zelanda, ha acquisito Coverstar Central, il suo rivenditore esclusivo di coperture di sicurezza automatiche in 29 stati. La transazione interamente in contante, completata il 2 agosto 2024, si prevede avrà immediati effetti positivi sugli utili.
Coverstar Central, con sede a Indianapolis, è il più grande rivenditore di coperture di sicurezza automatiche e fornitore di servizi negli Stati Uniti, con sei centri di distribuzione e servizio regionali. Questa acquisizione è in linea con le priorità strategiche di Latham, puntando ad accelerare la crescita e l'adozione di coperture di sicurezza automatiche. L'integrazione verticale dovrebbe portare a un espansione dei margini di EBITDA rettificati.
Latham vede anche opportunità per sfruttare le relazioni di Coverstar Central con i costruttori di piscine per aumentare la consapevolezza e la conversione a piscine in fibra di vetro. L'azienda prevede di continuare a collaborare con gli altri rivenditori nei restanti 21 stati e in Canada.
Latham Group (Nasdaq: SWIM), el mayor diseñador y fabricante de piscinas residenciales enterradas en América del Norte, Australia y Nueva Zelanda, ha adquirido Coverstar Central, su distribuidor exclusivo de cobertores de seguridad automáticos en 29 estados. La transacción totalmente en efectivo, completada el 2 de agosto de 2024, se espera que tenga un impacto inmediato en las ganancias.
Coverstar Central, con sede en Indianápolis, es el mayor distribuidor y proveedor de servicios de cobertores de seguridad automáticos en EE.UU., operando seis centros de distribución y servicio regionales. Esta adquisición está alineada con las prioridades estratégicas de Latham, con el objetivo de acelerar el crecimiento y la adopción de los cobertores de seguridad automáticos. La integración vertical se espera que genere márgenes de EBITDA ajustados ampliados.
Latham también ve oportunidades para aprovechar las relaciones de Coverstar Central con los constructores de piscinas para aumentar la conciencia y la conversión a piscinas de fibra de vidrio. La empresa planea continuar trabajando con sus otros distribuidores en los 21 estados restantes y Canadá.
Latham Group(Nasdaq: SWIM)는 북미, 호주 및 뉴질랜드에서 가장 큰 지상형 주거용 수영장 설계 및 제작업체로, Coverstar Central를 인수했습니다. Coverstar Central은 29개 주에서 독점적인 자동 안전 커버 대리점입니다. 2024년 8월 2일 완료된 이번 전액 현금 거래는 즉각적인 수익 증가 효과를 가져올 것으로 예상됩니다.
인디애나폴리스를 본사로 둔 Coverstar Central은 미국에서 가장 큰 자동 안전 커버 대리점이자 서비스 제공업체로, 여섯 개의 지역 배급 및 서비스 센터를 운영하고 있습니다. 이번 인수는 Latham의 전략적 우선 사항과 일치하며, 자동 안전 커버의 성장과 채택을 가속화하는 것을 목표로 하고 있습니다. 수직적 통합은 조정된 EBITDA 마진의 확대를 가져올 것으로 예상됩니다.
Latham은 또한 Coverstar Central의 수영장 건설업체와의 관계를 활용하여 유리 섬유 수영장에 대한 인식 및 전환을 증가시킬 수 있는 기회를 보고 있습니다. 이 회사는 나머지 21개 주 및 캐나다에 있는 다른 대리점과의 협력을 계속할 계획입니다.
Latham Group (Nasdaq: SWIM), le plus grand concepteur et fabricant de piscines résidentielles enterrées en Amérique du Nord, en Australie et en Nouvelle-Zélande, a acquis Coverstar Central, son revendeur exclusif de couvertures de sécurité automatiques dans 29 États. La transaction entièrement en espèces, finalisée le 2 août 2024, devrait avoir un impact immédiat sur les bénéfices.
Coverstar Central, dont le siège est à Indianapolis, est le plus grand revendeur et fournisseur de services de couvertures de sécurité automatiques aux États-Unis, avec six centres de distribution et de service régionaux. Cette acquisition s'inscrit dans les priorités stratégiques de Latham, visant à accélérer la croissance et l'adoption des couvertures de sécurité automatiques. L'intégration verticale devrait se traduire par une augmentation des marges d'EBITDA ajustées.
Latham voit également des opportunités d'exploiter les relations de Coverstar Central avec les constructeurs de piscines afin d'augmenter la sensibilisation et la conversion vers les piscines en fibre de verre. L'entreprise prévoit de continuer à travailler avec ses autres distributeurs dans les 21 États restants et au Canada.
Latham Group (Nasdaq: SWIM), der größte Designer und Hersteller von unterirdischen privaten Schwimmbädern in Nordamerika, Australien und Neuseeland, hat Coverstar Central erworben, seinen exklusiven Händler für automatische Sicherheitsabdeckungen in 29 Bundesstaaten. Die vollständig bar bezahlte Transaktion, die am 2. August 2024 abgeschlossen wurde, wird voraussichtlich sofortige positive Auswirkungen auf die Gewinne haben.
Coverstar Central mit Sitz in Indianapolis ist der größte Händler und Dienstleister für automatische Sicherheitsabdeckungen in den USA und betreibt sechs regionale Vertriebs- und Servicezentren. Diese Akquisition passt zu den strategischen Prioritäten von Latham und zielt darauf ab, Wachstum und Akzeptanz automatischer Sicherheitsabdeckungen zu beschleunigen. Die vertikale Integration wird voraussichtlich zu erweiterten bereinigten EBITDA-Margen führen.
Latham sieht auch Möglichkeiten, die Beziehungen von Coverstar Central zu Poolbauern zu nutzen, um das Bewusstsein und die Umstellung auf Glasfaserpools zu erhöhen. Das Unternehmen plant, weiterhin mit seinen anderen Händlern in den verbleibenden 21 Bundesstaaten und Kanada zusammenzuarbeiten.
- Acquisition expected to be immediately accretive to earnings
- Vertical integration expected to expand Adjusted EBITDA margins
- Opportunity to accelerate growth and adoption of automatic safety covers
- Potential to increase awareness and conversion to fiberglass pools
- Acquisition aligns with Latham's strategic priorities
- None.
Insights
This acquisition is a strategic move for Latham Group, positioning them for growth and margin expansion. Key points:
- Vertical integration should lead to increased margins in the automatic safety cover segment.
- The deal is expected to be immediately accretive to earnings, indicating positive financial impact.
- Expansion of Latham's direct market presence in 29 states could drive sales growth.
- Potential for cross-selling opportunities, particularly in promoting fiberglass pools through Coverstar Central's existing relationships.
While specific financial terms weren't disclosed, the all-cash transaction suggests Latham has a strong cash position. Investors should monitor for synergies realization and any impact on Latham's balance sheet in upcoming quarters.
This acquisition strengthens Latham's market position in the residential pool industry:
- Coverstar Central is the largest automatic safety cover dealer in the U.S., giving Latham a dominant position in this product category.
- The deal covers key growth regions including the Northeast, Southeast and Midwest, plus Texas.
- Integration could lead to faster product adoption and market penetration for automatic safety covers.
- Latham can leverage Coverstar Central's 400+ pool builder relationships to push its fiberglass pool conversion strategy.
This move aligns with industry trends towards safety and energy efficiency in pool products. The acquisition could potentially accelerate market share gains for Latham in the competitive pool industry landscape.
From an operational perspective, this acquisition presents several advantages:
- Vertical integration of the automatic safety cover product line should streamline operations and reduce costs.
- Access to Coverstar Central's six regional distribution and service centers enhances Latham's logistics and service capabilities.
- Integration of Coverstar Central's training and technical support could improve overall service quality and customer satisfaction.
- Potential for operational synergies in areas like inventory management, distribution and customer service.
However, successful integration will be crucial. Latham must carefully manage the transition to maintain Coverstar Central's reputation for customer satisfaction and efficient service. The company should also focus on retaining key talent to ensure continuity and leverage Coverstar Central's expertise.
- Acquisition Positions Latham to Drive Product Line Sales Growth and Adoption of Automatic Safety Covers and Provides Opportunities to Further Advance Fiberglass Conversion Strategy
- Vertical Integration Expected to Increase Margins
- Transaction is Expected to be Immediately Accretive to Earnings
LATHAM, N.Y., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced that it has acquired Coverstar Central, Latham’s exclusive automatic safety cover dealer in 29 states in the Northeast, Southeast, and Midwest regions of the country, including Texas. The all-cash transaction was completed on August 2, 2024.
Headquartered in Indianapolis, Coverstar Central is the largest automatic safety cover dealer and service provider in the U.S. The company operates six regional distribution and service centers through which it sells products and provides training, installation, and field repair services to support 400+ pool builders and dealers in its geographies. Coverstar Central is recognized throughout the pool industry for its total commitment to customer satisfaction and its excellence in providing service and technical support promptly and efficiently.
Latham’s automatic pool covers offer unparalleled safety, forming an "isolation barrier" when they are closed that seals off all the sides of the pool. In addition to its safety benefits, this product line offers several important savings and maintenance benefits for pool owners, including significant reductions in water evaporation, lower pool heating and electricity costs, and reduced chemical usage.
Commenting on the transaction, Scott Rajeski, Latham’s President and CEO noted, “This acquisition is fully aligned with our strategic priorities and will help to accelerate the growth and adoption of automatic safety covers. Coverstar Central has been Latham’s trusted dealer partner since the launch of our automatic safety covers in 2006 and is a recognized industry leader. As one company, with a fully integrated sales and marketing strategy, we expect to accelerate the sales growth of this product, which can be fitted on any pool type. The vertical integration of our automatic safety cover product line in the acquired geographies also is expected to result in expanded Adjusted EBITDA margins. Additionally, we see opportunities to leverage Coverstar Central’s long-standing relationships with pool builders in its markets to increase the awareness of, and conversion to, fiberglass pools. Importantly, Coverstar Central is an excellent cultural fit with Latham, and we look forward to welcoming its leadership and team members to our organization.”
Mr. Rajeski added, “Latham Group values its long-standing relationships with the other dealers that sell its automatic safety covers in the remaining 21 states across the country and in Canada, and we plan to continue to work closely with our partners in their respective geographies to spur sales of autocovers and identify and invest in mutually beneficial growth opportunities.”
“Joining Latham Group represents the natural next step in our growth trajectory, and we expect to be able to effectively deploy our combined resources to further the adoption of automatic safety covers in our markets,” said John St. Clair, CEO of Coverstar Central. “Our two companies have enjoyed an excellent relationship based on our mutual commitment to superior customer service and, as one company, we will be able to strengthen our collaboration, fine-tune our services, and continue to increase awareness of this industry-leading product offering.”
About Latham Group, Inc.
Latham Group, Inc., headquartered in Latham, NY, is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Latham has a coast-to-coast operations platform consisting of approximately 1,800 employees across 24 locations.
Forward-looking Statements
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact may constitute forward-looking statements, including statements regarding the recent acquisition of Coverstar Central and the expected impact of the acquisition on our future operating results and financial position as well as our business strategy and plans. These statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including: unfavorable economic conditions and related impact on consumer spending; adverse weather conditions impacting our sales, and can lead to significant variability of sales in reporting periods; natural disasters, including resulting from climate change, geopolitical events, war, terrorism, public health issues or other catastrophic events; competitive risks; our ability to attract, develop and retain highly qualified personnel; inflationary impacts, including on consumer demand; our ability to source raw materials and components for manufacturing our products, our ability to collect accounts receivables from our customers; our ability to keep pace with technological developments and standards, such as generative artificial intelligence; the consequences of industry consolidation on our customer base and pricing; interruption of our production capability at our manufacturing facilities from accident, fire, calamity, regulatory action or other causes; product quality issues, warranty claims or safety concerns such as those due to the failure of builders to follow our product installation instructions and specifications; delays in, or systems disruptions issues caused by the implementation of our enterprise resource planning system; cyber-security breaches and data leaks, and our dependence on information technology systems; compliance with government regulations; our ability to transportation services; the protection of our intellectual property and defense of third-party infringement claims; international business risks; and our ability to secure financing and our substantial indebtedness; and other factors set forth under “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and subsequent reports we file or furnish with the SEC. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time that may impair our business, financial condition, results of operations and cash flows.
Although we believe that the expectations reflected in the forward-looking statements are reasonable and our expectations based on third-party information and projections are from sources that management believes to be reputable, we cannot guarantee future results, levels of activities, performance or achievements. These forward-looking statements reflect our views with respect to future events as of the date hereof or the date specified herein, and we have based these forward-looking statements on our current expectations and projections about future events and trends. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof. We anticipate that subsequent events and developments will cause our views to change. Our forward-looking statements further do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake.
Contact:
Lynn Morgen
Casey Kotary
ADVISIRY Partners
lathamir@advisiry.com
212-750-5800
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