Jacuzzi Brands, a portfolio company of Ares Management, Clearlake Capital Group and Apollo Global Management, has completed two acquisitions with the buys of Hydropool Hot Tubs and Swim Spas (Hydropool) and BathWraps.
Hydropool is a manufacturer and seller of swim spas and hot tubs and is considered to be the largest hot tub manufacturer outside of the US and the second largest swim spa manufacturer globally. The company’s products are sold under the Hydropool and La-Z-Boy Hot Tub brands through a 250-plus retailer network in over 50 countries around the world.
Hydropool was founded in 1970 by Dale Papke and today is led by its President David Jackson, a 22-year veteran with Hydropool, who will continue in this role under Jacuzzi ownership. Hydropool is headquartered in Mississauga, ON (www.hydropoolhottubs.com).
BathWraps is a manufacturer of acrylic custom baths and showers that are sold into the remodeling market through a network of 120-plus dealers. The company was founded in 1997 as Liners Direct and change its name to BathWraps in January of this year. Jeff Conner, who will continue in his role as President, acquired the company in 2004, having 
since led the company through a period of tremendous growth. BathWraps is based near Chicago in Itasca, IL (www.bathwraps.com).
“We are extremely excited about the addition of both Hydropool and BathWraps to our existing spa and bath businesses,” said Bob Rowan, CEO of Jacuzzi Brands. “Both companies are complementary to our core business and are led by exceptional management teams, which will remain in place as the businesses continue to operate independently.”
Jacuzzi Brands is a global manufacturer and distributor of branded bath and spa products. These include whirlpool baths, spas and spa accessories, showers, saunas, bathtubs, water care supplies and other plumbing products. Company owned brand names include Jacuzzi, Sundance, ThermoSpas and Dimension One Spas. Jacuzzi Brands is headquartered near Los Angeles in Chino Hills, CA (www.jacuzzi.com).
Apollo took Jacuzzi Brands private in 2006 and Clearlake Capital and Ares invested in the company in 2009. In 2013, Jacuzzi recapitalized to raise liquidity, reduce debt and to extend maturity dates of its loans out to 2018 and beyond. Jacuzzi’s equity sponsors – Ares, Apollo and Clearlake – converted debt to purchase additional equity and Ares converted an additional $25 million of debt into a new subordinated mezzanine loan. At that time, the recap was undertaken to allow Jacuzzi to capitalize on opportunities emerging from the recovery of the housing industry and the overall economy.
Ares Management (NYSE:ARES) has approximately $100 billion in assets under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt. Within Ares, its private equity group manages $25 billion of assets and is currently investing its fifth private equity fund with $7.8 billion of committed capital. Ares Management is headquartered in Los Angeles with offices across the United States, Europe, Asia and Australia (www.aresmgmt.com).
Clearlake Capital Group has over $4 billion of assets under management and invests in the following sectors: energy and power; technology, communications and business services; and consumer products and services. The firm was founded in 2006 and is headquartered in Los Angeles (www.clearlakecapital.com).
Apollo has total assets under management of $197 billion in private equity, credit and real estate funds invested across a core group of nine industries: chemicals; commodities; consumer & retail; distribution & transportation; financial & business services; manufacturing & industrial; media, cable & leisure; packaging & materials; and satellite & wireless. The firm has offices in New York, Los Angeles, Houston, Chicago, Bethesda, Toronto, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong and Shanghai (www.agm.com).
Jacuzzi was advised in both transactions by New York-based Sphaeris Capital Management, a boutique middle market investment bank.
© 2017 Private Equity Professional | June 30, 2017
