Jandy has acquired the Levolor product line from System Dynamics, a privately held company based in Scottsdale, Ariz.
Terms of the deal, which was finalized in July, were not disclosed. Levolor is a leading manufacturer of electronic water-fill systems for pools and spas, and is seen as a natural fit for Jandy.
“The acquisition of the Levolor product line will further extend our leadership position in electronic controls and integrated products,” said Bob Rasp, Jandy’s chief executive officer.
The purchase of the Levolor line is the first acquisition made by Jandy since the firm was bought in 2006 by The Carlyle Group, a private equity company. However, the deal had been in the works for a number of years, said Vance Gillette, Jandy’s vice president and general manager of pool systems.
“Many Jandy customers use Levolor for automatic fill systems,” Gillette said. “There is not a product that we researched that can provide their kind of [automatic water] leveling ability.”
System Dynamics produces six models of the Levolor, which senses the water level in a pool or spa and automatically maintains a consistent volume. Builders often use the product for vanishing-edge projects.
Bill Seneff, founder/president of System Dynamics, said he is “proud” that Jandy purchased the Levolor line.
“The Levolor and Jandy product synergy, along with a shared focus to exceed customer expectations, is what convinced me that this was the best move,” Seneff said.
Industry members speculate that Jandy’s acquisition is part of a “one-stop shopping” trend among major manufacturers in the pool and spa industry.
“It shows Jandy’s drive to have a product in every conceivable category and to round out its product line,” comments Barry Greenwald, president of the pool and spa division of Fiberstars Inc.
A few years ago, a builder might commonly buy a pump from one manufacturer and a heater from another, industry experts said. But that scenario is beginning to change.
Greenwald, whose company makes fiberoptic lighting for pools and spas, said he expected the industry’s three major manufacturers — Jandy, Hayward Pool Products and Pentair Water Pool and Spa — to expand their reach in the next few years. Small- and medium-sized companies would fill in niche gaps.
“At a certain point in the future, if you stay with one of the big guys you’ll be able to buy what you need for both the building and the aftermarket,” Greenwald said.
Jandy is a Petaluma, Calif.-based manufacturer of pool and spa equipment. The firm is expected to take over the manufacturing of the Levolor from System Dynamics by 2008.
David Nibler, Jandy’s vice president of marketing and business development, said Levolor customers will not experience any hiccup in service, especially because the products Jandy already offers dovetail well with Levolor.
“Jandy AquaLink RS Controls and Levolor Automatic Fill Systems are a perfect combination,” Nibler said.
“We’ve been working closely with Bill over the past couple of months to ensure a seamless transition for Levolor customers.”