Business
Latham Group Acquires Coverstar Central - Latham’s Exclusive Automatic Safety Cover Dealer in 29 States
Acquisition Positions Latham to Drive Product Line Sales Growth and Adoption of Automatic Safety Covers and Provides Opportunities to Further Advance
About this update from Latham Group, Inc.
[{"type":"text","content":"Acquisition Positions Latham to Drive Product Line Sales Growth and Adoption of Automatic Safety Covers and Provides Opportunities to Further Advance Fiberglass Conversion StrategyVertical Integration Expected to Increase MarginsTransaction is Expected to be Immediately Accretive to Earnings LATHAM, N.Y., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced that it has acquired Coverstar Central, Latham’s exclusive automatic safety cover dealer in 29 states in the Northeast, Southeast, and Midwest regions of the country, including Texas. The all-cash transaction was completed on August 2, 2024. Headquartered in Indianapolis, Coverstar Central is the largest automatic safety cover dealer and service provider in the U.S. The company operates six regional distribution and service centers through which it sells products and provides training, installation, and field repair services to support 400+ pool builders and dealers in its geographies. Coverstar Central is recognized throughout the pool industry for its total commitment to customer satisfaction and its excellence in providing service and technical support promptly and efficiently. Latham’s automatic pool covers offer unparalleled safety, forming an \"isolation barrier\" when they are closed that seals off all the sides of the pool. In addition to its safety benefits, this product line offers several important savings and maintenance benefits for pool owners, including significant reductions in water evaporation, lower pool heating and electricity costs, and reduced chemical usage. Commenting on the transaction, Scott Rajeski, Latham’s President and CEO noted, “This acquisition is fully aligned with our strategic priorities and will help to accelerate the growth and adoption of automatic safety covers. Coverstar Central has been Latham’s trusted dealer partner since the launch of our automatic safety covers in 2006 and is a recognized industry leader. As one company, with a fully integrated sales and marketing strategy, we expect to accelerate the sales growth of this product, which can be fitted on any pool type. The vertical integration of our automatic safety cover product line in the acquired geographies also...