Hayward Industries has entered into an agreement to be acquired by CCMP Capital Advisors, MSD Partners, and Alberta Investment Management Corporation. The transaction is expected to close in the third quarter of 2017.
Hayward Industries is a manufacturer of residential and commercial pool equipment and industrial flow control products. The company’s products include pool and spa equipment such as pumps, filters, heaters, cleaners, salt chlorinators, automation equipment, lighting, and safety products. The company is headquartered in Elizabeth, NJ (www.hayward.com).
Hayward was founded in 1925 and has been owned by the Davis family since 1964. The company has grown over the years through both organic product development and strategic acquisitions that have built its product offering and expanded its geographical reach and the company now sells its products worldwide. The most recent add-on was in July 2016 when the company acquired Kripsol Group – a maker of pumps, filters, ladders, lights, salt chlorinators, and controls – based southwest of Madrid in Yuncos, Spain. Hayward has achieved an average annual revenue growth rate above 10% since the Davis family purchased control.
“I am extremely proud of the accomplishments realized by our team in positioning Hayward as a leading provider of pool equipment throughout the world. As I approach retirement, I am very confident this next generation of ownership will carry on the Hayward tradition and that our legacy is in excellent hands,” said Robert Davis, Co-Chairman of the Board of Hayward.
Clark Hale, the current President and CEO of Hayward, and his management team will retain an ownership interest in the business. “We are thrilled to partner with Clark and his team to acquire Hayward, which has built an outstanding leadership position and brand loyalty in the pool equipment market. Since the purchase of control of Hayward by the Davis family in 1964, the company has grown from a regional pool equipment supplier to a global leader with a track record of product innovation and world class supply chain and manufacturing capabilities,” said Mark McFadden, a Managing Director at CCMP.
CCMP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and European companies. The firm typically invests $100 million to $500 million of equity per transaction in companies with enterprise values of $250 million to $2 billion. Sectors of interest include consumer/retail, industrial, chemicals/energy, and healthcare. CCMP is headquartered in New York with additional offices in Houston and London (www.ccmpcapital.com).
“We are delighted to have the opportunity to partner with Hayward’s management in this seminal event in the company’s distinguished history, and we are pleased to be trusted with the stewardship of the business in the next chapter of its evolution,” said Kevin Brown, a Managing Director in the Private Capital Group at MSD Partners. “Hayward is a perfect fit with MSD Private Capital Group’s strategy of investing in companies that can deliver stability and growth over the long term, and we look forward to supporting its continued growth.”
MSD Partners invests across a range of asset classes. For direct investments in operating companies the firm looks to invest at least $100 million in business that have enterprise values of $200 million to $1 billion or more and EBITDA in excess of $25 million. Industries of interest include business and tech-enabled services, light industrial and industrial services, value-added distribution, healthcare services, media and entertainment, and consumer products. MSD Partners was formed in 2009 by the principals of MSD Capital to enable a select group of investors to invest in strategies that were developed by MSD Capital, a family office formed to manage the capital of Michael Dell and his family. MSD Partners is headquartered in New York (www.msdprivatecapital.com).
Alberta Investment Management Corporation (AIMCo) is one of Canada’s largest and most diversified institutional investment fund managers that manages an investment portfolio of approximately $100 billion – with a $4 billion private equity allocation – for a range of public sector pensions, endowments and government funds. AIMCo is headquartered in Edmonton (www.aimco.alberta.ca).
Houlihan Lokey is serving as financial advisor to CCMP, MSD Partners, and AIMCo on the transaction, with Bank of America serving as co-advisor. Bank of America, Jefferies, Morgan Stanley, and Nomura are providing financing to support the transaction. Goldman Sachs is the financial advisor to Hayward.
© 2017 Private Equity Professional | June 19, 2017
