Leslie's Poolmart

Leslie's Poolmart
Private
Industry Retail
Founded 1963[1]
Founder Phil Leslie
Headquarters Phoenix, Arizona
Number of locations
 910 (2015)
Products Pool supplies
Owner Leonard Green & Partners, CVC Capital Partners, GSO Capital Partners
Website www.lesliespool.com

Leslie's Poolmart, operating as Leslie's Swimming Pool Supplies, is the largest retailer of swimming pool supplies and related products globally. Leslie's sells the full range of supplies for pool maintenance including chemicals, cleaning devices, equipment and parts as well as recreational and safety products for swimming pools. Leslie's also sells items for the backyard and patio.

The company operates over 600 stores in 35 states throughout the U.S. with over 2,400 employees.[1] During its peak season Leslie's employs hundreds of seasonal employees bringing its workforce above 3,000 employees. Leslie's stocks approximately 700 items in each store, with more than 30,000 additional items available through the company's other channels of distribution and special order processes.[2] Leslie's also sells its own brand of pool supplies which accounted for 53% of the company's total sales in 2009.[2]

The company is headquartered in Phoenix, Arizona and has a particularly strong retail presence in Arizona, California, Florida, Georgia and Texas. For the year ended October 2009, Leslie's had sales of $510 million.[1]

History

Leslie's was founded in 1963 by Phil Leslie in a single location in North Hollywood, California. Leslie, together with partner Raymond Cesmat, began the company by opening a chain of swimming pool supply stores in the Los Angeles area.[3]

The two founding partners, Leslie and Cesmat began fighting over the future of the company in the late 1980s and Cesmat determined he wanted to sell his stake. In 1987, Leslie offered to buy Cesmat's stock at a prior agreed upon price, but Cesmat would not accept. Cesmat filed to have the corporation dissolved, and in 1988, a California Superior Court judge ordered the company be sold. The company was acquired, in a hostile take-over, for $23-million by private equity firm Hancock Park Associates. Leslie received $10 million from the sale of the company but was vocal that the company had been taken from him, as the sale was highly leveraged and court ordered.[3]

Following the sale of the company, managers at most Leslie's stores refused to open their stores in an expression of loyalty to Mr. Leslie. Ultimately, the new ownership and management were able to replace managers of stores that refused to open.[3] By the early 1990s, the company was again generating profits and the company listed its stock on NASDAQ. A 1991 initial public offering raised $28 million for the sale of 47% of the company, using the cash to repay debt and fund an expansion of the business.[3] From the beginning of 1989 through the end of 1996, Leslie's grew from 66 to 259 company-owned and operated stores, including 23 stores added through the acquisition of Sandy's Pool Supply, Inc. in August, 1992 which Mr. Leslie grew from 3 stores to 23.[4]

In 1997, the company was acquired for $140 million by private equity firms Leonard Green & Partners and Hancock Park Associates.[5]

In 2010, Leonard Green explored a sale of the company targeting in excess of $1 billion for the company.[6][7] In lieu of a sale, Leonard Green ultimately sold a substantial stake in the company to CVC Capital Partners and GSO Capital Partners.[8]

As of 2014 Leslie's comprises over 750 stores with plans for continued expansion to 1,000 stores.

References

  1. 1 2 3 Leslie's Poolmart Company Profile Yahoo! Business
  2. 1 2 Leslie's Poolmart, Inc. SEC Form 10-K 2009 Annual Report. Filed with the Securities and Exchange Commission December 23, 2009
  3. 1 2 3 4 Leslie's Poolmart, Inc.. Funding Universe Company History
  4. ↑ Leslie's Poolmart, Inc. SEC Form 10-K 1996 Annual Report. Filed with the Securities and Exchange Commission March 28, 1997
  5. ↑ LESLIE'S POOLMART TAKEN PRIVATE IN $140 MILLION DEAL. New York Times, June 13, 1997
  6. ↑ Leslie's Poolmart could make $1B+ splash. Phoenix Business Journal, July 14, 2010
  7. ↑ Leonard Green Seeks $1bn For Leslie's Poolmart. Financier Worldwide, July 14, 2010
  8. ↑ CVC Capital To Invest In Leslie's. Institutional Investor, August 30, 2010

External links

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