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