A maker of mid-priced hot tubs, LPI Inc., has entered the luxury market with the acquisition Catalina Spas.
Catalina’s president and CEO, Boyd Cargill, will retire after nearly 40 years in the business.
Under the LPI umbrella, Catalina’s brand will remain distinct and its selection will go unchanged, said Dave Hatley, president and CEO of LPI, which produces Signature Spas and Dr. Wellness Hot Tubs.
This acquisition will give LPI’s dealers, who number in the hundreds, access to a high-end spa line. Conversely, Catalina sellers, also 100-plus strong, will be able to add value-priced tubs to their inventories.
The transaction also makes Johnson City, Tenn.-based LPI one of the largest swim-spa manufacturers in the world. The company currently produces a limited number of swim spas in two models from its Signature Spas line. The Catalina brand will expand the menu to more than a dozen.
A year after Watkins Manufacturing also entered the swim-spa market with the purchase of Endless Pools, LPI plans to become a significant player. “[We plan to] focus on becoming the leader in swim spas throughout the world as the efficiencies of the consolidation will give us a good jump start on that,” Hatley said in an email to PSN.
Some changes will take place in operations. Manufacturing of the Catalina line will relocate from Perris, Calif. to LPI’s 318,000-square-foot manufacturing plant in Tennessee. To increase production capacity, LPI will hire an additional 40 to 50 employees, Hatley said. Relocation packages will be offered to key Catalina staff, he added.
The transition should be complete by Jan. 2. There may be four to six weeks when Catalina dealers experience some disruption, Hatley said, but the transition should not pose any other inventory challenges. LPI will honor all warranties.
Catalina Spas was founded in 1978. Cargill is credited for pioneering the inclusion of LED lights and stereos in hot tubs. In addition to hot tubs, LPI produces saunas, tanning beds and luxury bathtubs.
