Pool Corporation (Nasdaq/GSM:POOL) announced that it has signed a definitive agreement to acquire Largo, Florida-based Porpoise Pool & Patio, Inc., including its main operating subsidiaries, Sun Wholesale Supply, Inc. and Pinch A Penny, Inc. Sun Wholesale Supply, Inc. is a wholesale distributor of swimming pool and outdoor living products, including a specialty chemical packaging operation, selling primarily to Pinch A Penny franchisees. Pinch A Penny, Inc. is the largest franchisor of pool and outdoor living-related specialty retail stores in the U.S., with approximately 260 independently owned and operated franchised stores in Florida, Texas, Louisiana, Alabama and Georgia.
"We are excited about combining our industry-leading distribution capabilities with Porpoise Pool & Patio's well-established customer base, world-class chemical packaging operation, history of operational excellence and strong growth-oriented Pinch A Penny brand," says Peter D. Arvan, Pool Corporation president and CEO. "Since its founding over 45 years ago, Pinch A Penny has steadily grown and developed into a leading franchisor of swimming pool specialty retail stores and one of the highest-rated U.S. retail store franchise networks. The addition of the Pinch A Penny franchise network to POOLCORP's North American distribution business brings substantial growth and operating synergies for both existing independent retail customers and independent franchisees."
"Pinch A Penny was founded by my father, Fred Thomas, on the premise of providing value, quality and service to our customers, offering everything needed to operate and enjoy a swimming pool or spa," says John Thomas, CEO Porpoise Pool & Patio. "Joining with POOLCORP is an extraordinary opportunity to ensure the continuation, and future expansion, of that legacy."
"This strategic combination of Pinch A Penny's established retail support capabilities, Sun Wholesale's central distribution and chemical packaging operations with POOLCORP's national footprint, product breadth and resources provides a powerful platform for accelerated growth and enhanced retail customer experience," adds Jim Eisch, Porpoise Pool & Patio president and COO.
The pending acquisition strengthens both companies' distribution networks, broadens POOLCORP's sales channels and expansion opportunities in key pool markets and provides Porpoise Pool & Patio with access to a convenient and expanded range of products through POOLCORP's sales center network. POOLCORP will also benefit from an in-house, world-class chemical packaging operation. POOLCORP expects the net revenue growth contribution to be similar to that realized from other recently completed acquisitions and plans to use borrowings available from its newly expanded revolving credit facility and cash on hand to fund the acquisition.
The parties anticipate completing the transaction by December 31, 2021, subject to the satisfaction of regulatory and other customary closing conditions.
