CCMP Capital Advisors LP and MSD Partners have agreed to buy Hayward Industries Inc. Financial terms weren’t announced. Alberta Investment Management Corp is also investing. Haywood, of Elizabeth, New Jersey, makes residential and commercial pool equipment and industrial flow control products. MSD manages the capital of Michael Dell and his family. Bank of America, Jefferies, Morgan Stanley, and Nomura are providing the financing. Houlihan Lokey provided financial advice to CCMP, MSD Partners, and AIMCo on the transaction, with Bank of America serving as co-advisor. Ropes & Gray LLP is acting as legal counsel to the consortium and to CCMP. Dechert and Hogan Lovells are acting as legal counsel to MSD Partners and Torys is acting as legal counsel to AIMCo. Goldman Sachs is serving as financial advisor to Hayward, while McCarter & English LLP is acting as legal counsel.
NEW YORK & ELIZABETH, N.J.–(BUSINESS WIRE)–Hayward Industries, Inc. (“Hayward” or “the Company”) today announced that a partnership led by CCMP Capital Advisors, LP (“CCMP”) and MSD Partners, L.P. (“MSD Partners”) and including the Alberta Investment Management Corporation (“AIMCo”), has entered into a definitive agreement to acquire Hayward. Hayward is a leading global manufacturer of residential and commercial pool equipment, with an over 90 year history of supplying high quality, technologically advanced products that improve the pool experience for consumers. Clark Hale, current President and CEO of Hayward, and his management team will retain an ownership interest in the business.
Founded in 1925, Hayward is a global market leader in the residential and commercial swimming pool equipment industry with the most recognized brand and largest installed base in North America. Under the Davis family leadership for more than 50 years, and with the contributions and support of Oscar and Robert Davis, Hayward has grown through organic development and strategic acquisitions to expand its product offering to include a complete line of pumps, filters, heaters, cleaners, sanitizers, IoT driven automation and controls, lighting and accessories, and has built its global footprint through acquisitions in the United States, Canada, Europe and Australia. Driven by its superior engineering and manufacturing capabilities, customer relationships and successful acquisition integration, Hayward has achieved an average annual growth rate above 10% since the Davis family initially purchased control of the business in 1964.
“We are thrilled to partner with Clark and his team to acquire Hayward, which has built an outstanding leadership position and brand loyalty in the pool equipment market. Since the purchase of control of Hayward by the Davis family in 1964, the Company has grown from a regional pool equipment supplier to a global leader with a track record of product innovation and world class supply chain and manufacturing capabilities,” said Mark McFadden, a Managing Director at CCMP. “We look forward to working with Clark and his highly talented team to build on the company’s outstanding record of growth.”
“We are delighted to have the opportunity to partner with Hayward’s management in this seminal event in the Company’s distinguished history, and we are pleased to be trusted with the stewardship of the business in the next chapter of its evolution,” said Kevin Brown, a Managing Director in the Private Capital Group at MSD Partners. “Hayward is a perfect fit with MSD Private Capital Group’s strategy of investing in companies that can deliver stability and growth over the long term, and we look forward to supporting its continued growth.”
“I am extremely proud of the accomplishments realized by our team in positioning Hayward as a leading provider of pool equipment throughout the world. As I approach retirement, I am very confident this next generation of ownership will carry on the Hayward tradition and that our legacy is in excellent hands,” said Robert Davis, Co-Chairman of the Board of Hayward.
Clark Hale, President and CEO of Hayward added “Hayward and its employees are forever grateful for the vision and leadership that Oscar and Robert Davis have provided. We now look forward to partnering with CCMP and MSD Partners to continue our investments in product innovation, geographic expansions, and synergistic acquisitions.”
The transaction is expected to close in the third quarter of 2017, subject to customary closing conditions. Houlihan Lokey is serving as financial advisor to CCMP, MSD Partners, and AIMCo on the transaction, with Bank of America serving as co-advisor. Bank of America, Jefferies, Morgan Stanley, and Nomura are providing the financing. Ropes & Gray LLP is acting as legal counsel to the consortium and to CCMP. Dechert and Hogan Lovells are acting as legal counsel to MSD Partners and Torys is acting as legal counsel to AIMCo. Goldman Sachs is serving as financial advisor to Hayward and McCarter & English, LLP is acting as legal counsel.
Hayward Industries, Inc. is a leading global manufacturer of residential and commercial pool equipment and industrial flow control products. Headquartered in Elizabeth, NJ, Hayward markets a full line of energy efficient pool and spa equipment including pumps, filters, heaters, cleaners, salt chlorinators, automation, lighting, safety, and flow control products. Hayward products are sold worldwide. For more information contact Hayward at 908.351.5400 or visit Hayward.com.
About CCMP Capital
CCMP Capital Advisors, LP specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP focuses on generating alpha through the operational transformation and growth of its portfolio companies. With offices in New York, Houston and London, CCMP invests in three primary industries: Consumer/Retail, Industrial, and Healthcare. Selected investments include: Truck Hero, Badger Sportswear, The Hillman Group, Jamieson Laboratories, Jetro Cash & Carry, Milacron, PQ Corporation, Pure Gym, Shoes For Crews, Generac and Edwards.
About MSD Partners, L.P.
MSD Partners, L.P., an SEC-registered investment adviser, was formed in 2009 by the principals of MSD Capital, L.P. to enable a select group of investors to invest in strategies that were developed by MSD Capital. MSD Capital was established in 1998 to exclusively manage the capital of Michael Dell and his family. MSD Partners utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Private Capital Group leads MSD Partners’ control equity and structured preferred investments. MSD Partners’ team operates from the firm’s offices in New York and London. For further information about MSD Partners and the MSD Private Capital Group, please see www.msdpartners.com and www.msdprivatecapital.com.
About Alberta Investment Management Corporation
Alberta Investment Management Corporation is one of Canada’s largest and most diversified institutional investment managers with assets under management in excess of C$100 billion. AIMCo, established on January 1, 2008, invests globally on behalf of 32 pension, endowment and government fund clients in the Province of Alberta. AIMCo’s head office is located in Edmonton, Alberta, and has additional offices with investment teams located in Toronto, Ontario and London, United Kingdom. AIMCo’s Private Equity team comprises a dedicated group of experienced investment professionals and manages a private equity allocation of approximately C$4.0 billion.