This month we have seen a blizzard of high profile acquisitions. PoolCorp recently agreed to purchase Porpoise Pool & Patio Inc. and its principal operating companies, Pinch A Penny Inc. and Sun Wholesale Supply Inc.
Full details of the agreement were not disclosed.
With approximately 260 independently owned franchises in Florida, Texas, Louisiana, Alabama and Georgia, Pinch A Penny Inc. is a major franchisor of retail pool and outdoor life stores in the United States. Sun Wholesale Supply Inc., selling primarily to Pinch A Penny franchisees, is a wholesale distributor of pool and outdoor products and a specialty chemicals packaging facility.
“I understand it will take some time for things to settle down. I still process it myself,” John Thomas, president and CEO of Porpoise Pool & Patio Inc., told employees in a memo. “Pinch A Penny has been an integral part of my life for 47 years. I have spent the last 30+ years of my adult life running our business, so I understand that processing this information will take time,” he said.
Fred Thomas, a traveling salesman, originally founded Pinch A Penny in 1974 when his son John was just eight years old. In 1995, John Thomas was appointed President of Pinch A Penny and has overseen the company’s expansion.
“This acquisition ensures a stronger future for our companies. And it aligns our business with an excellent strategic partner in our industry, a partner who can create greater success for all,” Thomas said in the memo. “In short, it’s the right time for Pinch A Penny to start a new chapter and for my family to step aside and allow Pinch A Penny to grow into something bigger.”
Porpoise Pool & Patio’s established customer base, distribution capabilities, chemical packaging operation, operational success and “growth-oriented Pinch A Penny brand” were all highlighted by PoolCorp. (Nasdaq/GSM: POOL) executives on the execution of the transaction.
In a statement, PoolCorp. President and CEO Peter D. Aryan said, “The addition of the Pinch A Penny franchise network to PoolCorp’s North American distribution business. brings significant growth and operational synergies to both existing independent retail customers and independent franchisees.”
According to The Tampa Bay Business Journal, Pinch A Penny had 2020 sales of $387.3 million and 2,775 employees. Pool Corp. based in Covington is the world’s largest wholesaler of pool and garden supplies. The company operates 410 sales centers in North America, Europe and Australia and sells approximately 200,000 items to nearly 120,000 wholesale customers.
Pool Corp has been focused on revenue growth. It is growing into new geographic areas, expanding into existing markets and launching new product categories that are expected to increase its market share. To achieve this, the company has tried to expand through various acquisitions. In February, September and December 2020, the Company completed three acquisitions: Master Tile Network, Northeastern Swimming Pool Distributors and TWC Distributors. Jet Line Products, Inc. was purchased in October 2020 giving the company three facilities in New Jersey, three in New York, two in Texas and one in Florida. Pool Corp is also acquiring TWC distributors, bringing the total number of Florida outlets to nine.
The company has opened ten new locations so far this year. During the third quarter of 2021, Pool Corp also completed two strategic acquisitions. In June and April 2021, Vak Pak Builders Supply, Inc and Pool Source, LLC were purchased respectively. Acquisitions drove 5% quarterly revenue growth and 7% year-to-date performance in the third quarter.
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