Covington, Louisiana-based Pool Corp. (Nasdaq/GSM:POOL) this week signed an agreement to acquire Largo, Florida-based Porpoise Pool & Patio, Inc., including its main operating subsidiaries, Sun Wholesale Supply, Inc. and Pinch A Penny, Inc.
The agreement’s financial details were not disclosed.
Sun Wholesale Supply, Inc. distributes swimming pool and outdoor-living products, including a specialty chemical packaging operation, selling primarily to Pinch A Penny franchisees.
Pinch A Penny, Inc. is the largest franchisor of pool and outdoor living-related specialty retail stores in the U.S., with approximately 260 independently owned and operated franchised stores in Florida, Texas, Louisiana, Alabama and Georgia.
The acquisition will offer Pool Corp. “substantial opportunities for expansion,” the company said.
“We are excited about combining our industry-leading distribution capabilities with Porpoise Pool & Patio’s well-established customer base, world-class chemical packaging operation, history of operational excellence, and strong growth-oriented Pinch A Penny brand,” said President and CEO Peter D. Arvan. “Since its founding over 45 years ago, Pinch A Penny has steadily grown and developed into a leading franchisor of swimming pool specialty retail stores and one of the highest-rated U.S. retail store franchise networks. The addition of the Pinch A Penny franchise network to POOLCORP’s North American distribution business brings substantial growth and operating synergies for both existing independent retail customers and independent franchisees.”
The acquisition is expected to be finalized by December 31, 2021, subject to the satisfaction of regulatory and other customary closing conditions.
Pool Corp. said the deal will strengthen both companies’ distribution networks, broaden sales channels and expansion opportunities in key pool markets and provide Porpoise Pool & Patio with access to a “convenient and expanded range of products through POOLCORP’s sales center network.”
Pool Corp.’s recent net sales for the third quarter of 2021 reflected overall growth of 24% from Q3 2020, with an operating income of $237.2 million.