Five well-known companies in the Northeastern United States have merged after receiving private-equity backing.
They include Aqua Doctor of East Hanover, N.J.; Chaikin Ultimate Pools in Deer Park, N.Y.; Cool Pool & Spa in Nanuet, N.Y.; Gorlin Pools and Spas in Lakehurst, N.J.; and Rainbow Pools in Fishkill, N.Y.
Each firm offers its own mix of construction, service and retail, with concrete and vinyl-liner pools covered. They serve New York and New Jersey, with one or two also doing business in Connecticut and Massachusetts.
“Each member of this group has been individually successful over the past many decades, but together we had a vision that if we could combine forces, the whole would be greater than the sum of our parts,” said Kyle Chaikin, co-president of Chaikin Ultimate Pools.
The companies were acquired by Bloomfield Hills, Mich.-based private equity firm O2 Investment Partners.
In addition to holding high profiles within their respective markets, the company principles are heavily involved in industry associations. Chaikin currently serves as president of the Northeast Spa and Pool Association. Isaac Keselman of Aqua Doctor sits on NESPA’s executive committee. Rene Insignares of Cool Pool & Spa is a NESPA past president. Steve Gorlin of Gorlin Pools and Spas is past president of NESPA and the Pool & Hot Tub Alliance. And Ed Cohen of Chaikin Ultimate Pools is a past president of the Long Island Pool and Spa Association and a long-time educator for NESPA.
As a result, the company owners of the pool/spa firms are friends and some had been talking about ways to merge or otherwise share services for several years now, Chaikin said.
“With technology what it was and how little capabilities we had back then compared to today, we couldn’t figure out a way to do it,” he said.
The time was right this year, he said, due to technological advancements that make it easier to merge operations, the increased attraction of investors to the pool/spa industry, and the trend of industry rollups.
Now backed by O2, the company has named its CEO, John Tisera. He has experience as a business consultant and, before that, served as president and CEO of several companies, the most recent in the HVAC industry.
The individual companies' former owners now hold ownership in the new entity. Each company will continue to run largely as is, with the owners of each staying on to manage their respective operations.
The holding company has yet to be named, Chaikin said. But over time, the new name is expected to be incorporated into each company’s branding.
The new entity plans to grow through additional acquisitions and organically, said Chaikin, who will focus on business development and adding new companies. The team is seeking other established names, he said, and is open to owners looking for an exit strategy.
For now, the team expects the company to remain in the Northeast, but further expansion is possible. “We’d like to be the premier pool care services, builder and remodeling in the country,” Chaikin said.
Over time, Chaikin said, the company expects to develop a training facility to instruct staff of all five operations on best practices as determined by the company.
Currently, all companies offer service and maintenance; all but one of them offers construction; and two have retail locations.
O2 Investment Partners specializes in investing in lower middle market business-to-business services, technology, and select industrial companies. The company says it prefers to partner with management to build and grow the companies on its portfolio.
