Information on the target
Great Plains Supply, a family-owned business founded in 1984 by Steve Reiff, has established itself as a prominent player in the pool and spa supply industry. Based in Lenexa, Kansas, the company expanded its operations into the Gulf Coast region through its Houston-based subsidiary, Pool and Spa Products, which was founded by Jay Patterson in 1986. Reiff acquired a majority stake in Pool and Spa Products in 1992, and the company has since been managed by successive generations of the Reiff and Patterson families, with Susan Ahn currently serving as president following her parents' retirement in early 2019.
As the pool supplies industry experienced increased M&A activity and consolidation, Ahn and her family began contemplating a potential sale. Although there was no immediate plan to sell, they sought guidance from Turnstone Investment Banking in late 2021 to prepare the company for future opportunities.
Industry overview in the target’s specific country
The pool and spa supply industry in the United States is a robust market, valued at approximately $10 billion. This sector has seen significant growth driven by rising consumer interest in outdoor living spaces, increased disposable income, and a growing trend towards home improvement and leisure activities. The demand for pool and spa products has been further fueled by the COVID-19 pandemic, as homeowners sought to enhance their outdoor environments for relaxation and entertainment.
In recent years, the industry has also witnessed a wave of consolidation, with larger distributors acquiring smaller companies to expand their product offerings and market reach. This trend has created a competitive landscape where companies must differentiate themselves through superior customer service, innovative products, and efficient distribution networks.
Moreover, the regulatory environment surrounding pool and spa safety and maintenance has become increasingly stringent, necessitating that suppliers stay abreast of compliance requirements. This has opened opportunities for companies that can provide not only products but also expertise in navigating these regulations. As a result, the industry is poised for continued growth, with significant potential for strategic acquisitions and partnerships.
The rationale behind the deal The decision to sell Great Plains Supply was driven by the desire to capitalize on favorable market conditions and the increasing consolidation within the pool supplies industry. By engaging Turnstone Investment Banking, Ahn was able to strategically position the company to attract potential…