Custom molded pool products

New York, NY &#; March 16, &#; Tenex Capital Management (“Tenex”) is pleased to announce the sale of Tenex Capital Partners II, L.P. (“Fund II”) portfolio company Custom Molded Products (“CMP”) to Fluidra S.A. (BME: FDR), a global leader in the swimming pool and wellness space.

CMP is a leading supplier of innovative solutions for the recreational water industry with a strong portfolio of reputable brands such as DEL™, Brilliant Wonders®, SpaMASTER™ and Bobé Water & Fire. Headquartered in Newnan, Georgia, CMP operates manufacturing and distribution facilities from multiple locations in the United States and China. CMP’s products are carried by distributors and OEMs in the United States, Canada, Latin America, Europe, Australia and the Middle East.

“We are thrilled about CMP’s success during our partnership with Tenex, as well as the tremendous growth opportunity that the new partnership with Fluidra presents,” said Tom Moore, Chief Executive Officer of CMP.

Tenex Managing Director Gabe Wood commented “We’re extremely proud of the CMP team’s accomplishments during the past four years, including doubling revenue and tripling EBITDA since , integrating four add-on acquisitions, navigating a global pandemic across international manufacturing facilities, and deploying best-in-class business intelligence tools.”

Tenex Managing Director Ron Lejman also commented, “Even after running into a significant tariff headwind, the team successfully executed on an extensive list of operating initiatives generating significant performance improvements, including increased plant productivity and supply chain enhancements, all while consistently finding ways to better serve the customer.”

Raymond James & Associates, Inc. served as lead financial advisor to CMP, with Nomura Securities serving as a co-advisor, and Troutman Pepper Hamilton Sanders LLP serving as legal counsel.

Fluidra S.A. (BME: FDR), the Spanish listed global leader in pool and wellness equipment and connected solutions, today announced it has acquired Custom Molded Products (“CMP”), a Georgia-based manufacturer of pool and spa components, from Tenex Capital Management.

CMP is a leading supplier of innovative solutions for the recreational water industry with a strong portfolio of reputable brands such as DEL™, Brilliant Wonders®, SpaMASTER™ and Bobé. Headquartered in Newnan, Georgia, CMP operates manufacturing and distribution facilities from multiple locations in the United States and China. CMP’s products are supported by distributors and OEMs in the United States, Canada, Latin America, Europe, Australia and the Middle East.

The acquisition was valued at $ million and was fully settled at closing with existing cash and debt facilities. Proforma leverage is still within the 2x target, while maintaining a strong cash generation profile. The transaction is expected to be accretive to Fluidra’s Cash EPS from day one. Fluidra is raising its guidance based on the expected positive contribution from the CMP acquisition as follows:

• Sales growth from % to %
• EBITDA margin stays at % to 23%
• Cash EPS growth increases from % to %

With this acquisition, Fluidra will rapidly expand its offering in several strategic growth categories, such as fast-growing alternative sanitizers, white goods to support its Jandy equipment range and dedicated spa equipment, a substantial adjacent segment and opportunity for the company. Additionally, CMP’s broad range of LED solutions and water and fire features will complement and extend Fluidra’s existing portfolio. CMP’s product strengths, coupled with its operational and manufacturing expertise, will help Fluidra accelerate growth by providing its customers with a wider range of pool and spa technologies as well as through increased product delivery capabilities.

“CMP is a great fit—commercially, operationally and culturally—and a valuable extension to Fluidra’s existing North American operation,” said Bruce Brooks, Chief Executive Officer of Fluidra. “This acquisition allows us to expand our product portfolio in strategic areas to better meet customer demand, as well as by entering the new spa OEM market. We intend to draw from our Fluidra-Zodiac integration expertise to successfully achieve the numerous synergies identified.”

“We are thrilled to be joining Fluidra and recognize this as a tremendous growth opportunity,” said Tom Moore, Chief Executive Officer of CMP. “With their established and trusted reputation in the industry, we are confident that this will position both Fluidra and CMP for continued success in the years ahead.”

Following the acquisition, the CMP team and its base of operations will remain in Georgia. McGuireWoods LLP acted as legal adviser to Fluidra. Raymond James & Associates, Inc. acted as lead financial advisor and Troutman Pepper Hamilton Sanders LLP acted as legal advisor to CMP. Nomura Securities International, Inc. and FIDUS Partners also acted as co[1]advisors to CMP.