Fluidra Acquires CMP

Fluidra S.A. has announced it has acquired Custom Molded Products (CMP), a Georgia-based manufacturer of pool and spa components, from Tenex Capital Management.

CMP has a strong portfolio of reputable brands such as DEL, Brilliant Wonders, SpaMASTER and Bobé. Headquartered in Newnan, Ga., CMP operates manufacturing and distribution facilities from multiple locations in the U.S. and China. CMP’s products are supported by distributors and OEMs in the U.S., Canada, Latin America, Europe, Australia and the Middle East.

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%
• EBITDA margin stays at 22.5% to 23%
• 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.

“CMP is a great fit — commercially, operationally and culturally — and a valuable extension to Fluidra’s existing North American operation,” says Bruce Brooks, chief executive officer of Fluidra. “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.”

“We are thrilled to be joining Fluidra and recognize this as a tremendous growth opportunity,” says Tom Moore, chief executive officer of CMP. “With the company's 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.”

Following the acquisition, the CMP team and its base of operations will remain in Georgia. McGuireWoods LLP acted as legal adviser to Fluidra. Raymond James & Associates, Inc. acted as lead financial advisor and Troutman Pepper Hamilton Sanders LLP acted as legal advisor to CMP. Nomura Securities International, Inc. and FIDUS Partners also acted as co advisors to CMP.