LPI, Inc. is wading deeper into the swim-spa category.
The manufacturer recently acquired Premium Leisure Spas, based in St. Petersburg, Fla.
Operational changes are planned. LPI will produce the Premium Leisure Spas’ hot tub line at its manufacturing center in Johnson City, Tenn., freeing up capacity at the acquired company’s 90,000-square-foot facility in Florida.
The 318,000-square-foot Tennessee plant will only produce hot tubs, while the Florida facility will operate as the world’s largest manufacturing center dedicated to swim spas, according to LPI.
LPI has experienced growing pains since November, 2016, when it acquired Catalina Spas, thus adding more than a dozen swim spas to its portfolio. As a result of that purchase, LPI relocated the manufacturing of Catalina Spas from Perris, Calif. to its Tennessee headquarters.
“Our swim spa business has been much better than we anticipated, which drove us to go out and secure a swim-spa-only facility,” LPI CEO Dave Hatley said in an email to PSN. “Over the course of the last 10 months, we realized the space in our current building would never work for the current demand we’re facing.”
Producing hot tubs and swim spas in separate buildings makes the company more nimble, Hatley added. This has become even more important, as this most recent acquisition introduces 10 more swim-spa models to the line.
“This will allow us to almost immediately increase production on both our portable [hot tubs] and swim spas with highly experienced teams in both facilities,” he said
LPI’s brand portfolio currently includes Dr. Wellness Therapy Spas, as well as tanning beds, bath tubs and a line of infrared residential saunas. It sells through mass merchants, distributors and independent dealers.
Premium Leisure Spas has been manufacturing a variety of acrylic hot tubs and swim spas since 2007. It has dealers around the world.
Hatley doesn’t anticipate that the transition will pose any inventory disruptions. LPI will maintain a full staff at both facilities.
