Quad-C Management has sold Balboa Water Group, a manufacturer of components for the portable spa, and jetted bath markets, to AEA Investors.
Balboa Water Group (BWG) manufactures pumps; blowers; electronic control systems; jets; fittings, valves and drains (known as white goods in the industry); and other accessories for the leisure water industry. The company is headquartered south of Los Angeles in Tustin, CA and has facilities in Denmark, Belgium, China and Australia (www.balboawatergroup.com).
BWG was founded in June 2007 when Quad-C partnered with CEO Eric Kownacki and VP of Sales Jeff Christine – both were previously executives with Polaris Pool Systems, a former Quad-C portfolio company – to pursue a consolidation strategy in the leisure water sector. During the past eight years, BWG has completed five acquisitions and invested capital to improve its operating systems, develop new products, and expand into international markets.
“I have worked with Quad-C now for over 15 years and they have been great partners,” said Mr. Kownacki. “Throughout the duration of the investment in BWG, Quad-C supported our acquisition strategy and was willing to invest significant capital even in the depths of the recession to accomplish the strategic vision we set together in 2007. That commitment to the partnership was crucial and was paramount to our success and potential for continued growth in the future.”
Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution, and transportation & logistics. Quad-C was founded in 1989 and is headquartered in Charlottesville, VA (www.quadcmanagement.com).
“When we invested in BWG, we saw an opportunity to consolidate the spa and bath components industry under the banner of an industry-leading brand powered by an exceptional management team,” said Thad Jones, Partner at Quad-C. “Despite the historic downturn in the market, we remained committed to the strategic vision and were able to take advantage of the distress in the market to pursue several follow-on acquisitions at attractive prices while also investing in new product development and expanding globally. Thanks to the dedication, execution and tenacity of the management team, BWG emerged from the recession with very strong sales growth and a robust new business pipeline.”
AEA, the buyer of Balboa Water Group, makes equity and debt investments in middle market companies that operate in the following sectors: retail and consumer products, services, specialty chemicals, and value-added industrial products. The firm manages approximately $9 billion of capital. AEA was founded in 1968 and is headquartered in New York (www.aeainvestors.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-4-15
