At Latham Swimming pools, a designer and producer of in-ground swimming swimming pools, the final decade has been bookended by traumatic occasions: the Nice Recession and the coronavirus pandemic.
The previous despatched the longtime family-owned enterprise to chapter court docket after the housing market crashed and banks tightened lending – neither splendid for big-ticket pool purchases. However the firm went into Chapter 11 with an exit technique in hand, and emerged only a month later – in time for the business’s essential 2010 pre-season commerce present.
In distinction, the pandemic delivered an surprising increase to the outside sector of the financial system, together with pool-installers and the producers, like Latham Swimming pools, that provide them. One commerce group indicated in February that the excessive demand for yard swimming pools seen in 2020 will proceed this yr, with set up dates already booked into late 2021 and early 2022.
Relatedly or not, two pool corporations simply dipped a toe into the general public inventory market, and Latham Swimming pools is on the brink of do the identical.
Leslie’s Inc., father or mother to spa and pool merchandise retailer Leslie’s Swimming Pool Provides, went public in October. Pool gear producer Hayward Pool Merchandise did so final month.
Latham Swimming pools, in the meantime, filed a registration assertion with regulators final week with plans to supply and commerce inventory beneath the ticker image SWIM as Latham Group Inc.
Whereas particulars on the providing stay to be labored out, Latham Group would function as a “managed firm” beneath market guidelines as a result of greater than 50 % of the voting energy of its inventory could be owned by two personal fairness companies with massive stakes within the firm, Pamplona Capital Administration and Wynnchurch Capital. (A collection of such companies has been concerned for the reason that firm exited chapter.)
Monetary info that Latham Group filed with its registration assertion signifies gross sales final yr totaled $403.4 million, in contrast with almost $318 million in 2019. Web revenue was near $16 million final yr, versus $7.5 million in 2019.
The corporate, based in 1956 and headquartered off Northway Exit 5 in Latham, says it’s the largest designer, producer and marketer of in-ground residential swimming swimming pools in North America, Australia and New Zealand – and the one coast-to-coast operator within the U.S. Swimming pools symbolize about 60 % of gross sales; liners and covers evenly cut up the remaining 40 %.
The corporate touts its fiberglass swimming pools as having “vital runway for development” attributable to underpenetration on this nation – simply 18 % of all U.S. installations final yr had been fiberglass versus 40 % in Spain, as an example.
A chart within the registration assertion compares the “home-owner economics” of the three important kinds of in-ground swimming pools, with fiberglass costing some $54,000 up-front, vinyl at $37,500 and concrete at $75,000.
For installers, fiberglass is faster to put in and requires fewer laborers, permitting extra installations per yr and considerably extra revenue, Latham Group says.
Marlene Kennedy is a contract columnist. Opinions expressed in her column are her personal and never essentially the newspaper’s. Attain her at [email protected]
Extra from The Every day Gazette: