Premium Leisure is looking toward the future.
With its legal battles over and the purchase of a formal rival safely behind it, the Florida spa manufacturer is hoping to recapture previous dealers and chart a path to growth.
Premium Leisure acquired several molds from Living Water Products of Clearwater, Fla., which closed its doors in March. The acquisition was made through intermediary buyer Sunrise Spas of Grimsby, Ontario, Canada.
The two Florida firms have a long history between them, including litigation over unpaid bills and intellectual property. However, their differences were resolved through a court-ordered mediation shortly after the Living Water shutdown.
“We’re hoping that this is under the bridge,” said Brian Wiley, president of Premium Leisure in St. Petersburg, Fla. “The new vision is to have good customer support, good quality and get the old Hydro Spas name behind us.”
Premium Leisure added four of Living Waters’ product lines to its offerings. These include Gulf Coast Spas, Cool Nights Spas and Garden Leisure Luster Series Spas. The company also acquired the Pilates H2O Spas brand, which was previously available at Costco.
However, Premium Leisure has no plans to renew distribution with the wholesale giant. Selling through Costco proved to be a strategic misstep when the company was operating as Hydro Spas.
“Our goal for the company is to concentrate back into the specialty retailer, and we were able to acquire some nice molds that we thought would help accomplish this,” Wiley explained.
To help bolster this initiative, Steven O’Shea will act as the firm’s new vice president of sales and marketing. O’Shea formerly headed sales for Watkins Mfg., in Vista, Calif.
Premium Leisure also hired several key members of Living Water’s staff to support the acquisition.
The company hopes to recapture some of the old dealers who sold Living Water products, many of whom were never told the company shut down.
Despite the economic downturn, Premium Leisure is spending the money to plan for future growth, according to Wiley.
“A little balance sheet erosion at a time [like this] is not a bad thing for a company,” he said. “The market is going to take some time to fully return, but I don’t believe we’ll be as affected as long as other people [will].”
Another Living Waters’ brand, Freestyle, was retained by Sunrise Spas.