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Jacuzzi To Be Acquired By Private Equity Firm

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Jacuzzi To Be Acquired By Private Equity Firm

Jacuzzi Brands Inc., the parent company of Sundance Spas Inc./Jacuzzi Spas Intl., is set to undergo a significant transformation as it enters into an agreement to be acquired by a private equity firm for $1.25 billion. Apollo Management, LP, a New York-based firm, will take over Jacuzzi Brands, including the assumption of $257 million in outstanding debt. This acquisition offers Jacuzzi shareholders $12.50 per share, representing a 21 percent premium over the stock’s closing price on October 10.

With the completion of this sale, Jacuzzi Brands, based in West Palm Beach, Florida, will transition from a publicly traded company to a privately owned one. Jonathan Clark, the President and CEO of Sundance Spas Inc./Jacuzzi Spas Intl., welcomes this change as he believes it will bring greater efficiency in addressing capital needs and facilitating faster decision-making processes.

The sale is expected to be finalized in the first quarter of 2007, pending various approvals, including those from shareholders and regulatory authorities, as well as the receipt of equity and debt financing. Clark assures stakeholders that the day-to-day operations of the spa manufacturer will remain unaffected, emphasizing that this purchase represents the next stage of the company’s evolution since Jacuzzi Inc.’s acquisition of Sundance Spas in 1998.

In a press release, Apollo disclosed its plans to establish Jacuzzi Bath, including the portable spa business, as a separate entity. Additionally, they intend to sell Jacuzzi’s plumbing division, Zurn, to Rexnord Corp., a company already in Apollo’s portfolio. Following the sale, Al Marini, the President and CEO of Jacuzzi Brands, will continue to lead Zurn and Jacuzzi Bath, while George M. Sherman, the non-executive chairman of Rexnord, will assume the same title with Jacuzzi Bath.

Marini expresses optimism about the future, stating that the collaboration with Apollo and the leadership of George Sherman will strengthen their position and enable the implementation of innovative strategies. The press release also mentions that certain members of Jacuzzi Brands’ management team are expected to remain with the business post-closure, although specific details were not disclosed.

However, the pending sale has encountered some obstacles. Southeastern Asset Management Inc., Jacuzzi Brands’ largest shareholder, has voiced opposition to the deal, considering the per-share buyout price insufficient. Furthermore, two shareholder class-action lawsuits have been filed against Jacuzzi Brands and its board, alleging breaches of fiduciary duties in relation to the agreement with Apollo. Jacuzzi Brands firmly believes that the lawsuits lack merit and intends to vigorously defend itself against the claims.

While the acquisition marks a significant milestone for Jacuzzi Brands, the company is confident that it will continue to thrive under its new ownership, leveraging the resources and expertise of Apollo to further strengthen its leadership positions in the industry.

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Hot Tub Repair Man Accused Of Burglary

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Hot Tub Repair Man Accused Of Burglary

During a ski trip in Georgia, a group of friends encountered an unfortunate incident involving a hot tub repairman. After completing the job, the friends invited the repairman in for a beer. However, the following day, the repairman allegedly broke into their apartment and made off with personal items valued at nearly $20,000.

The tenants reported the incident to the Steamboat Springs Police Department on March 16. According to the arrest affidavit, the renters had contacted Vacasa rental regarding a broken hot tub in their rental property. Christopher Svenson, a contractor hired through Vacasa, responded to the request. One of the renters had a conversation with Svenson while he was repairing the hot tub and extended an invitation to join them for a drink.

The next day, the three renters left the premises to go skiing. Upon returning at noon, one of the renters discovered that the door was unlocked. They reported several stolen items, including a Rolex watch worth $18,000, Bose headphones worth $329, a Dell laptop worth $848, Adidas sneakers worth $160, and an $80 laptop case. Additionally, one of the renters reported the theft of an American Express credit card, while another stated that $1,200 in cash was missing from their laptop case.

The renter whose credit card was allegedly stolen received notifications of its usage in multiple locations around Steamboat, starting at 12:10 p.m. on March 16, just ten minutes after one of the renters returned to find the unlocked door.

According to the affidavit, Svenson had only been employed by the rental company for five days, as confirmed by the property manager. The property manager informed the police that Svenson had access to the garage but did not possess keys to enter the residence.

On the morning of March 16 at 9:15 a.m., Svenson reportedly expressed feeling belittled by the tenants to the property manager and promptly quit before leaving the office. However, despite quitting, Svenson was allegedly seen at the rental property by a maintenance staff member at 9:30 a.m., just 15 minutes later.

The police used vehicle registration data and video footage from stores where the stolen credit card was used to identify Svenson as the suspect. Subsequently, Svenson was arrested on Wednesday, April 26, on charges of second-degree burglary, a Class 3 felony, and theft, a Class 5 felony. His bail was set at $25,000.

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Canadian Spa Brands Merge – Hydropool + Sunrise

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Canadian Spa Brands Merge - Hydropool + Sunrise

Mississauga-based company Hydropool has made a groundbreaking announcement in the Canadian hot tub and swim spa industry by merging with Sunrise Spas. This merger brings together the leadership, intellectual property, and industry experience of both companies, totaling almost a century, to enhance the efficiency of the production process for both manufacturers.

The primary objective of the merger is to strengthen both the Hydropool and Sunrise brands. By working closely together, the companies aim to build a strong future. The merger presents an exciting opportunity for all those involved in either company.

While the two manufacturers join forces, most aspects of their operations will remain unchanged. Retailers can expect to continue receiving the same high level of service and support they have been accustomed to.

Over the next year, there will be a gradual shift in Sunrise’s production and assembly from Grimsby, Ont. to Hydropool’s location in Mississauga. This transition will be carried out at a reasonable pace to minimize any disruption for retailers.

Throughout the merger, the Sunrise brand family will be maintained, with a focus on strengthening both brands without one overshadowing the other. Dealers will maintain their existing relationships with Sunrise Spas’ customer service, sales teams, and senior leadership. Parts will continue to be supplied directly by Sunrise, and the warranty service will also be handled by Sunrise.

The merger is seen as a change that makes sense for both companies, considering the current economic climate. By operating more efficiently and expanding manufacturing capabilities, both Hydropool and Sunrise will be better positioned for the future.

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Spa Retailers Seek Military Candidates for Hot Tub Donation

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Spa Retailers Seek Military Candidates for Hot Tub Donation

The Spa and Sauna Company in Reno is currently accepting nominations for their upcoming hot tub donation program, specifically targeting local veterans and service members. This initiative, in partnership with spa manufacturer Sundance Spas and charity organization Wish for Our Heroes, aims to provide a deserving recipient with a complimentary Sundance Spa. The donation is scheduled to take place this summer.

While the program is open to nominations nationally through other participating hot tub dealers, candidates eligible for the upcoming donation must reside in the Reno, Sparks, Truckee, Tahoe area. The Spa and Sauna Co., an established business since 1990, specializes in the sale of hot tubs, swim spas, saunas, and BBQs. Their showrooms are located in Reno, Sparks, Carson City, Santa Cruz, and San Jose.

In addition to their collaboration with Wish for Our Heroes, The Spa and Sauna Co. actively supports various local community programs and participates in Toys for Tots. Owner Scott Clark emphasizes their gratitude and sense of responsibility to give back to the community. As passionate hot tub enthusiasts themselves, they aim to share the joy and benefits of hot tub ownership with as many families as possible.

The most recent recipient of their hot tub donation was Jason Kirmel-Long, a 100% disabled Navy veteran from Dayton, NV, who served as an electrician. Previous recipients include Trent Robbins of Sparks, a Purple Heart Marine, as well as several members of the Nevada National Guard with multiple overseas deployments.

Wish for Our Heroes is a national 501(c)(3) organization dedicated to supporting active-duty military personnel by providing resources to make their deployments more manageable and enhance the quality of their family lives. Sundance Spas, Wish for Our Heroes, and spa dealers across the country have collectively donated nearly 100 hot tubs to veterans, positively impacting the lives of over 120 veterans and their families.

If you know a deserving veteran or service member who could benefit from this program, you can submit a nomination on the Wish for Our Heroes website. Whether it’s a friend, family member, or even yourself, take the opportunity to recognize those who have served and contribute to making a difference in their lives.

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