Last week, Big Three manufacturer Zodiac Pool Solutions signed an intent to merge with global powerhouse Fluidra to form what company officials are calling the world's largest pool-equipment provider.
“If we now look at the market, we will see that, until last Friday, there wasn’t truly a global leader,” said Eloi Planes, executive president of Fluidra. “This merger … is the most complementary of them all and it’s one that truly creates this global leader.”
The new firm will retain the Fluidra name and global headquarters in Sabadell, Spain, near Barcelona. Zodiac’s Vista, Calif. offices will now serve as Fluidra’s North American headquarters. The new company will serve every continent, with a physical presence in 46 countries, sales in 150 nations, and a staff of 5,500. Sales are expected to total 1.3 billion euro (approximately $1.51B at press time). The new entity will hold approximately 1,100 patents.
No changes are planned for Zodiac's leading brands, including Jandy Pro Series, Polaris and Zodiac Pool. For the time being, officials said, no changes are planned for any SKUs. The Zodiac and Fluidra product lines do overlap in some areas, particularly robotic cleaners, alternative sanitation and the Internet of Things. These overlaps will be explored, officials said.
Additionally, the new entity expects to retain its current loyalty programs for dealers and buying groups.
The deal is expected to close the first half of 2018. As part of the transaction, Zodiac's equity owner, Rhone Capital, will receive 83 million shares of Fluidra stock, with a lock-up period of two years, meaning the company cannot sell shares before then. Rhone’s shares will comprise 42% of the new company’s total, while the Spanish producer’s founding families will hold 29%.
Fluidra has long been a publicly traded company, and its new iteration will remain listed on the Spanish Stock Exchange.
Historically, Fluidra's residential sales far outweigh its commercial, at least on a global basis. However, the Spanish producer has mostly been known in the U.S. as a dominant provider of commercial equipment, first under the name Astral. It took the Fluidra moniker in 2007, after having acquired several other companies. Fluidra has tried boosting its presence here by establishing a U.S. headquarters in Jacksonville, Fla., through which to sell its large, commercial-grade filters and other equipment, then by purchasing Cedar Grove, N.J.-based robotic-cleaner manufacturer Aqua Products in 2010. Today, its major brands include AstralPool, Cepex, Gre and CTX Professional.
In 2016, Fluidra generated approximately $827 million dollars in sales. But to date, only about 7% of Fluidra’s sales came from North America. Its largest market, Europe, accounts for 63%.
With this transaction, Fluidra receives a large bump in the Americas, which the manufacturer estimates account for 54% of the global pool-equipment market. It will see a boost in the residential market, in particular, through the Zodiac, Jandy and Polaris branded products, along with a deeper entrée into products related to automation and the Internet of Things.
In turn, Fluidra brings a stronger global presence and healthy slate of commercial offerings to complement Zodiac’s product lines, which accounted for approximately $546 million in sales in 2016.
"Fluidra's deep portfolio of products and experience in the residential and commercial pool sectors will give us the ability to expand into commercial projects, including recreation centers, waterparks and resorts," the manufacturer said in an email.
Eloi Planes, will become executive chairman of the board, while Zodiac CEO Bruce Brooks will move to Spain and serve as the new company’s CEO.
Planes said that Fluidra began exploring such a merger in 2009, but that the time wasn’t right because of the Great Recession. “The times were not the best at that moment,” he said. “[But] the industrial rationale of this merger is so evident that we’ve been talking about it for years on end.”
Zodiac’s and Fluidra’s boards of directors unanimously support the merger. An expanded board will include 12 members – four nominated by Fluidra’s founding families, four by Rhone Capital, and four independents.
The new entity does not plan to change its official locations. At least until the merger's finalization, customers should continue to work through their regular Zodiac and Fluidra contacts.
Fluidra was founded in 1969 as Astral by four Catalan families. In addition to its pool and wellness division, it handles irrigation and water treatment; fluid handling and industrial applications; engineering and other water applications.
Correction: The original version of this story said that Fluidra generated 823 million euro in sales in 2016. The figure should have represented American dollars -- $823 million.
