Photo courtesy Cal Spas

Hard times in the spa industry have created opportunities for two manufacturers.

LMS, the corporate parent of Cal Spas, has reached an agreement to produce and design Coleman Spas.

The Coleman Spas name dropped into limbo after its licenser, Living Water Products, closed, but LMS is optimistic its new agreement will re-energize the brand. 

“Bringing Coleman back to the industry as a national name will do the industry [well],” said Casey Loyd, president of LMS in Pomona, Calif. “We’re going to make a product that’s unique in the market, but we’ll still be concerned with better-best price points because it needs to be a stand-alone.”

Coleman Spas will be offered as an exclusive brand as well as a companion product, depending on the dealer, he added.

The 2010 line of Coleman Spas will be officially available this November.

Meanwhile, Phoenix-based Maax Spas has acquired the financially troubled DM Industries, maker of Vita Spas.

DM Industries, based in Miami, filed for Chapter 11 in March and subsequently cut 206 jobs and several of its satellite offices. The company remained in operation, however, and the principals at Maax don’t intend to bring about any major change to the company or staff.

The two firms generally serve dealers on opposite sides of the country, making parallel growth an option.

“They’re going to grow their brand and we’re going to grow ours, and we’ll operate in the marketplace as friendly competitors,” Emil Nygard, vice president of sales and marketing at Maax. “We always considered them the competitors that helped build the industry.”

The acquisition of DM, much like Cal Spas’ move to produce Coleman products, may signify the beginning of more consolidation among spa manufacturers, whose output has dropped some 60 percent over the past five years.

“We’re seeing some consolidation and attrition in retail, so we think it’s inevitable that the manufacturers will follow suit,” Nygard explained. “We’re looking at other opportunities ourselves, as well as the one we’ve just gone through.”