MAAX Spas, which is owned by Brookfield Asset Management, has bought L.A. Spas, a maker of hot tub products. No financial terms were disclosed.
Chandler AZ (PRWEB) December 10, 2014
MAAX Spas Industries Corporation (MAAX Spas) acquired California-based L.A. Spas last week, creating one of North America’s largest hot tub and swim spa manufacturers.
This latest move is the second acquisition by MAAX Spas since being acquired by Brookfield Asset Management in 2008 and boosts the company to the number three position in the billion dollar pool and spa industry.
With over 20 years of experience across multiple industries in both Canada and the US, Brookfield has a strong track record in private equity and is an active partner with MAAX Spas.
Senior leadership at both MAAX Spas and L.A. Spas see both companies benefiting from the transaction and foresee a continuation of growth, supported by Brookfield’s access to capital.
“This move supplements MAAX Spas’ strengths, which include developing market-driven products, best-in-class manufacturing and customer care,” said John Johnson, president of MAAX Spas. “By consolidating all operations into our Chandler facility, we will realize greater economies of scale, allowing us to deliver more value to our retail partners.”
Beginning three years ago with a redefined strategic plan, L.A. Spas made significant investments in new products and expanded its distribution channels, producing revenue growth of 55% and making the company an increasingly attractive option to suitors.
Given the strength and history of the brand and its network of retailers in 37 countries, L.A. Spas will continue to retain its name and distinct identity.
“With this transaction, we’ve been able to achieve two things that were important to me,” said Brad de Koning, CEO of L.A. Spas. “First, L.A. Spas’ specialty retailers will be the beneficiaries of expanded marketing resources with which to drive sales and profitability; second, our products will be manufactured in the USA by one of the best capitalized companies in this industry.”
Emil Nygard, VP of MAAX Spas, said the L.A. Spas acquisition will have a tremendous effect on MAAX Spas’ entire business. “With this acquisition, MAAX Spas will be in a terrific position to continue the growth of all our brands. Operational efficiencies will support product innovation plans, while expanding our distribution network will make both national and international marketing programs more effective, ultimately creating more sales for all our dealers.”
About MAAX Spas:
MAAX originated in 1969 with the founding of Modern Fiberglass and Metal. From the beginning, it was committed to long-lasting quality, innovation, and a drive to delight customers. These values propelled MAAX into becoming a leading quality manufacturer of portable acrylic hot tubs.
Acquired by Brookfield in 2008, MAAX Spas has earned a solid reputation by staying true to its original values. Today, MAAX Spas continues the legacy by offering the world’s first Appliance Grade hot tubs; what the company calls, “Built to the MAAX”. Visit http://www.MAAXspas.com for more information.
About L.A. Spas:
Built in the USA since 1976, L.A. Spas’ award winning products are sold by leading retailers around the world. L.A. Spas pioneered many modern day hot tub innovations, including its propriety Aqua Klean® filtration. Most recently, the company launched a number of feature-rich products which offer maximum value across a wide range of retail price points, all backed by an industry-leading manufacturer’s warranty.
For almost 40 years, L.A. Spas has focused on performance and quality to create a superior hydrotherapy experience. Visit http://www.LAspas.com for more information.