We are bracing for a big snowstorm in the Northeast this weekend, and I bet most people are already looking forward to the Spring. It is common to see an uptick in seasonal deals in the warmer months, such as for pool products, but Monomoy Capital Partners sees long-term growth in the sector.

“The demand for hot tubs and swim spas has grown consistently over the last ten years as the industry has benefitted from the broader market backdrop with increased homeowners repair & remodel spend and consumer purchasing power, ” Monomoy managing director Lee Mlotek tells Mergers & Acquisitions. “More recently, the Covid-19 pandemic encouraged individuals to spend more time in outdoor environments and sparked a growing focus on health and wellness. As a result, there was a renewed consumer interest in hot tubs and swims spas, both from existing participants and first time buyers, that will benefit the industry for the years to come.” Monomoy is a middle-market private equity firm that focuses mainly on the consumer and industrials sectors.

Earlier this week, Monomoy said it acquired Artesian Spas and Marquis Hot Tubs. Artesian and Marquis are both manufacturers of hot tubs and swim spas. The deal is Monomoy’s first in the pool and spa space, but Mlotek notes that the PE firm has experience investing in outdoor recreational products. Last year, Monomoy sold West Marine, a provider of aftermarket products to the boating, fishing, sailing and watersports markets, to L Catterton. The boating sector is seeing similar demand drivers, according to Mlotek.

“We have closely followed the industry for almost five years,” says Mlotek. “We are seeking to acquire other adjacent hot tub, pool, and swim spa manufacturers that supports our strategic initiatives of forming a leading pool and spa wellness platform.”

Are you actively seeking deals in the outdoor recreational sector? I would love to hear about it at [email protected]

Demitri Diakantonis