Natural Chemistry has entered into a conditional asset sale agreement to acquire the assets of SeaKlear, a division of HaloSource.
“It’s a great step forward for Natural Chemistry,” said Kate Thielscher, president of Natural Chemistry in Norwalk, Conn. “[The company] has been growing fast, and this will accelerate our growth. We’re very excited about it.”
In a notice to its investors, HaloSource said its SeaKlear business would sell for up to $7.5 million to be paid within 91 days of the agreement’s completion, with a deferred cash consideration of up to $500,000 to be paid by March 1, 2017.
The SeaKlear line of specialty chemicals will be added to Natural Chemistry’s collection of pool and spa enzyme products. However, both lines will still be sold under their own brands, and there will be no changes made to the current SeaKlear product line.
“It gives us the opportunity to take two great, well-known, well-respected brands to market,” Thielscher said.
HaloSource was previously composed of recreational, environmental and drinking-water businesses. The company recently relieved itself of the environmental water segment, and the Natural Chemistry acquisition will allow the company to focus exclusively on drinking water.
“While we’re very good at the discovery, the science, the innovation in all of those businesses … the real growth engine for our company for the long term was and is the drinking-water business,” said Martin Coles, CEO of HaloSource in Bothell, Wash. The company purifies water for more than 10 million people each day, its officials estimate.
How did this acquisition deal come about? HaloSource was looking to sell and Natural Chemistry was looking to buy. HaloSource recently issued a press release declaring its desire to focus on the drinking-water business.
“[This] caused me to pick up the phone to Martin Coles and say, ‘Should we be talking?’” Thielscher said.
Coles called the acquisition a positive move for the pool and spa industry because it has the potential to focus attention on the specialty chemical side of the business. “[It’s] a tremendously underpenetrated, but very rich, area of business for manufacturers, for distribution and for retailers,” he said.
The transaction is expected to close this month. At press time, HaloSource’s board of directors was scheduled to meet on May 19 to gain approval of the deal.
SeaKlear was started 30 years ago by Vanson. HaloSource entered the picture in 2002, when Vanson acquired it and took on the HaloSource name. In 2010, the company acquired the SmartPool line of chemical products, which was incorporated with SeaKlear’s.
Rebecca Robledo contributed to this article.