Custom Molded Products (CMP), a pool and spa product supplier, recently announced the acquisition of Saline Generating Systems (SGS), a sanitizer system manufacturer.
The deal adds residential and commercial saltwater chlorination systems to CMP’s product offerings. SGS will retain its branding and become a subsidiary of CMP, allowing it to take advantage of the acquirer’s sales, marketing and distribution channels.
“It’s a well-recognized salt generating system, and we want to take advantage of that,” said William Drury, Ph.D., president and CEO of CMP, which is headquartered in Newnan, Ga.
This is CMP’s second acquisition of an alternative sanitizer. In August 2017, the company purchased Del Ozone, an ozone and UV sanitization products supplier – a transaction that marked CMP’s entry into this product category.
“We’ve been very interested in the area of alternate sanitizers,” Drury said. “Our goal, at the moment, is to take the SGS product line and the Del Ozone product line and grow those.”
For SGS, that strategy means keeping its Tempe, Ariz. location and personnel as-is for the time being. SGS will continue working on its existing projects.
The opportunity CMP brings comes from an infrastructure, engineering and sales standpoint, according to Robert Trepp, president of SGS, who added that his firm feels CMP is a good fit with its business model and company culture.
“It should allow SGS to grow in multiples of where it is today,” he said.
Both SGS and Del Ozone have commercial divisions, whereas CMP had traditionally focused on residential recreational water. According to leadership at CMP, the company will not shy away from this sector and will pursue the commercial space with both brands in the future.
“We have a pretty strong commercial division, and we look forward to being able to bring CMP into that with us and making it grow even larger, said Trepp.
There are no current plans to acquire additional businesses, but CMP is open to other opportunities within the alternative sanitation space, Drury said.
