ne of North America’s largest manufacturers of package pool kits and components just got bigger.
Latham International announced Oct. 23 that it has entered into an agreement to acquire Kafko International, a manufacturer of package pool walls, braces, vinyl liners and metal fencing based in Mississauga, Ontario, Canada.
Terms of the agreement were not disclosed.
Latham International, headquartered in Latham, N.Y., was formed in December 2001 to acquire Latham Plastics, Pacific Pools and Technician Pool Products. The company has taken an aggressive growth posture since then, purchasing Triac Pool Products and Rockcliffe Recreational Products in autumn 2002.
Putting Kafko under the Latham umbrella was a natural next step for Latham, said Mark Laven, the company’s president/CEO.
“This acquisition happened by strategy, which is to help consolidate the manufacturing segment in the package-pool business,” he explained. “It’s been my view for a long time that Kafko has been a well-run, service-oriented company, and they have a similar production line to our own.”
Kafko had been conducting several industry roll-ups of its own in the past year before attracting the attention of Latham. It recently purchased Aquaflex, a Sacramento, Calif., vinyl manufacturer along with Michigan-based Total Vinyl Pool Products.
“That was a big part of our regional manufacturer strategy,” said Bill Kindness, Kafko president.
Kindness will continue his duties at Kafko and the company will remain in Canada.
“Bill has done a great job building that business,” Laven said. “I think we’ll take the same approach we took with Triac, [where we] spend a full year getting to know their operations, the people and the customers before considering any staff changes.”
The 33-year-old Kafko employs 300 people and Kindness said it has been growing at an annual rate of 15- to 20 percent.
“It’s going to take some time to digest the operations of both companies, but I’m not fearful of any staff changes,” Kindness said. “We are our own brand with our group of companies and we also have regional manufacturing.”
The pool and spa community seemed to take the deal in stride. The industry has experienced a considerable amount of consolation over the past several years — and many have seen it as a good thing.
“I always have supported the consolidation because our industry is too fragmented,” said Bob Rasp, past chairman of the NSPI Manufacturers Council. “You need bigger companies to better market to the consumer, to develop better, more innovative products. So I’m pleased to hear about [the Kafko deal].”
Bill Bagin, co-owner of B&B Pool & Spa, a builder in Chestnut Ridge, N.Y., said it’s likely the deal will mean good things for him and his fellow installers. “This gives Latham an opportunity to expand its offerings by having a better-rounded product mix,” Bagin said. “We use Triac’s liners ... but this gives them even more to offer us.”
Meanwhile, Latham’s competitors said they think there’s room for corporate giants as well as smaller businesses in the package-pool market.
“It gives them a lot of buying power, that’s for sure. But it’s too soon to tell exactly what it means for us,” said Kevin Shea, president of Vyn-All, a vinyl liner manufacturer in Newmarket, N.H. “We’re a consumer-focused company, so maybe this creates an opportunity for us.”
Kelly Anderson contributed to this article.
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