Year in Review: In June 2017, a partnership of capital investment managers agreed to buy pool and spa behemoth, Hayward Industries.
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The partnership, led by CCMP Capital Advisors and MSD Partners and including Alberta Investment Management Corporation, has entered into a definitive agreement to acquire the 92-year-old firm.
SPLASH! understands it will be business as usual at the Australian arm of Hayward, and the buyout will not precipitate any change in operations or staffing in Australia or overseas. President and CEO Clarke Hale, together with the executive staff, are expected to retain their positions.
Hayward is a global market leader in the residential and commercial swimming pool equipment industry with the most recognised brand and largest installed base in North America.
Davis family leadership
Under the Davis family leadership for more than 50 years, Hayward has grown through organic development and strategic acquisitions to expand its product offering to include a complete line of pumps, filters, heaters, cleaners, sanitisers, IoT driven automation and controls, lighting and accessories, and has built its global footprint through acquisitions in North America, Canada, Europe and Australia.
Hayward has achieved an average annual growth rate above 10 per cent since the Davis family initially purchased control of the business in 1964.
Robert Davis, co-chairman of the Hayward board says he is extremely proud of the accomplishments realised by his 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,” he says.
Clark Hale says that Hayward and its employees are grateful for the vision and leadership that Oscar and Robert Davis have provided.
“We now look forward to partnering with CCMP and MSD Partners to continue our investments in product innovation, geographic expansion, and synergistic acquisitions,” he says.
Recent acquisitions by Hayward Industries include Poolvergnuegen, a suction cleaner manufacturer in the United States, as well as Kripsol, a Spanish based manufacturer of residential and commercial pumps and filters, and Sugar Valley, a Spanish based manufacturer of intelligent automation systems, water chemistry and sanitisation products.
CCMP Capital Advisors has office in New York, Houston and London, and invests mainly in the middle markets in the consumer retail, industrial and healthcare sectors.
Mark McFadden, a managing director at CCMP, says they 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.
“Through two generations of Davis family leadership, 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,” he says. “We look forward to working with Clark and his highly talented team to build on the company’s outstanding record of growth.”
MSD Partners has offices in New York and London, and invests in public and private companies, credit, real estate and other asset classes and securities.
Kevin Brown, a managing director in the private capital group at MSD Partners says they 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.
“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,” he says.
Alberta Investment Management Corporation, AIMCo, is one of Canada’s largest and most diversified institutional investment managers with assets under management in excess of C$100 billion.
The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions. Goldman Sachs is serving as financial advisor to Hayward and McCarter & English, LLP is acting as legal counsel.
Hayward Industries, Inc. is a leading global manufacturer of residential and commercial pool equipment and industrial flow control products, headquartered in Elizabeth, New Jersey, USA.
Hayward markets a full line of energy efficient pool equipment including pumps, filters, heaters, cleaners, salt chlorinators, automation, lighting, safety and flow control products. Hayward products are sold worldwide, with facilities in the United States, Australia, Canada, France, Spain and China.
Leading brands include AquaRite, TurboCell, CAT Controllers, TriStar, TriVac, PoolVac V-Flex, Navigator, HydroRite, Super Pump, MaxFlow, PowerFlo, StarClear, Sense and Dispense, PowerFlo and OmniLogic. For more information contact Hayward at (908) 351-5400 or visit Hayward.com.
About CCMP Capital
CCMP Capital Advisors, LP (“CCMP”) specialises in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP focuses on generating alpha through the operational transformation and growth of its portfolio companies. With offices in New York, Houston and London, CCMP invests in three primary industries: Consumer/Retail, Industrial, and Healthcare. Selected investments include: Truck Hero, Badger Sportswear, The Hillman Group, Jamieson Laboratories, Jetro Cash & Carry, Milacron, PQ Corporation, Pure Gym, Shoes For Crews, Generac and Edwards.
About MSD Partners, L.P.
MSD Partners, L.P., an SEC-registered investment adviser, was formed in 2009 by the principals of MSD Capital, L.P. to enable a select group of investors to invest in strategies that were developed by MSD Capital. MSD Capital was established in 1998 to exclusively manage the capital of Michael Dell and his family. MSD Partners utilizes a multi- disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Private Capital Group leads MSD Partners’ control equity and structured preferred investments. MSD Partners’ team operates from the firm’s offices in New York and London. For further information about MSD Partners and the MSD Private Capital Group, please see www.msdpartners.com and www.msdprivatecapital.com.
About Alberta Investment Management Corporation
Alberta Investment Management Corporation, AIMCo, is one of Canada’s largest and most diversified institutional investment managers with assets under management in excess of C$100 billion. AIMCo, established on January 1, 2008, invests globally on behalf of 32 pension, endowment and government fund clients in the Province of Alberta. AIMCo’s head office is located in Edmonton, Alberta, and has additional offices with investment teams located in Toronto, Ontario and London, United Kingdom. AIMCo’s Private Equity team comprises a dedicated group of experienced investment professionals and manages a private equity allocation of approximately C$4.0 billion.