L Catterton has agreed to buy pool supplies company Leslie’s Holdings Inc. from CVC Capital Partners. GIC, an investment firm and sovereign wealth fund in Singapore, is also investing alongside L Catterton. Financial terms were not disclosed.
Leslie’s, based in Phoenix and founded in 1963, sells pool equipment such as covers, ladders and filters. Under CVC’s ownership, Leslie’s has grown from 645 to about 900 stores. The company has also expanded its e-commerce presence. CVC invested in Leslie’s in 2010.
Leslie’s is the first deal L Catterton has made since the firm closed its flagship fund in 2016. “Our investment strategy is based on building enduring businesses, characterized by strong consumer demand fundamentals and fueled by powerful and growing consumer brands,” says L Catterton co-CEO Scott Dahnke.
L Catterton was formed in 2016 when French luxury goods maker LVMH Moet Hennessy Louis Vuitton SE combined its private equity group, known as L Capital, and its real estate investment unit with consumer-focused private equity firm Catterton. The firm is based in Greenwich, Connecticut and London and has offices across Europe, Asia and Latin America. In that same year, L Catterton bought Hanna Andersson from Sun Capital Partners Inc.
CVC Capital is a London-based private equity and investment advisory firm that has raised more than $65 billion in commitments since it was founded in 1981. In 2016, CVC Capital purchased glass bottler Anchor Glass Container Corp. from KPS Capital Partners LP.
In other pool part deals, AEA Investors acquired Balboa Water Group from Quad-C Management in 2015. Also in 2015, Centerbridge Partners bought Kik Custom Products from CI Capital Partners.
Goldman Sachs & Co. (NYSE: GS), Bank of America Merrill Lynch and Gibson Dunn & Crutcher are advising Leslie’s. Nomura Securities and Kirkland & Ellis LLP are advising L Catterton. Sidley Austin LLP is representing GIC.