Investindustrial acquires Jacuzzi Brands

Alessia Argentieri
14 January 2019

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Investindustrial has bought US-based whirlpool bathtubs and spas specialist Jacuzzi Brands.

The deal saw the GP acquire 95% of Jupiter Holding I, owner of Jacuzzi Brands, from Apollo Global Management, Ares Management Corporation and Clearlake Capital Group.

The GP deployed capital from its Investindustrial VI fund, which held a final close on its €2bn hard-cap in February 2016, three months after launch.

Investindustrial plans to accelerate the company's growth by investing in innovation, product development and R&D. Following the deal, the GP appointed Charles Huebner, former CEO of kitchen designer Dacor, as executive chair of Jacuzzi Brands.

US-based Nottingham Spirk Design Associates co-invested alongside Investindustrial by acquiring a 5% stake in the company.

Jacuzzi Brands is a manufacturer of premium spas, whirlpool, soaking and walk-in bathtubs and related bathroom products and accessories. The company was founded in California in 1956 by the Italian Jacuzzi family and today operates under multiple brands, including the flagship Jacuzzi, Sundance, Dimension One Spas, Hydropool, ThermoSpas and BathWraps.

Jacuzzi Brands has eight production facilities located across North America, South America and Europe. Its main European factory is based in Valvasone, near Pordenone, Italy, where the Jacuzzi family originally came from. The company generated revenues of around $500m in 2018.

Apollo Global Management acquired Jacuzzi Brands, at the time listed on the NYSE, in a 2006 deal valued at $1.25bn, including $257m of debt, and subsequently took the company private. Ares Management Corporation and Clearlake Capital Group acquired a stake in the company in 2009.

In July 2013, Jacuzzi Brands closed a recapitalisation to raise liquidity, reduce its outstanding indebtedness and extend the maturity dates of its loans to 2018 and beyond. The transaction, which reduced Jacuzzi's debt to approximately $124m, included a new US ABL facility of $35m and a new term loan of $80m.

To facilitate the recapitalisation, Jacuzzi Brands' primary equity sponsors, Ares Management, Apollo Global Management and Clearlake Capital Group, converted debt to purchase additional equity. Ares converted an additional $25m of debt into a new subordinated mezzanine loan.

Jacuzzi Brands represents the fourth investment made by Investindustrial in the high-end home products segment, following the acquisitions of Flos, B&B Italia and Louis Poulsen.