Leslie’s Poolmart Agrees to Deal Taking It Private
Frustrated by a lagging stock price, Leslie’s Poolmart said Thursday that it has agreed to be taken private by a group led by Chairman Michael Fourticq and Chief Executive Brian McDermott.
The group--which includes Leonard Green & Partners L.P., a Los Angeles-based merchant banking firm--will purchase the company for $14.50 per share in cash, or about $100 million, McDermott said.
“We haven’t performed as a public stock the way we would have hoped,” McDermott said. “We felt [the company] was worth more to us than the market seemed to think it was worth to it.”
McDermott and Fourticq’s partnership, Hancock Park Associates, is still completing financing for the deal. A portion will come from Occidental Petroleum Corp., one of whose officers is also a member of Leslie’s board of directors.
Chatsworth-based Leslie’s is the nation’s largest chain of pool-supply stores. It went public in 1991, but despite rapid growth, its stock was subject to sharp upticks and plunges, soaring to above $19 per share in June then dipping to as low as $10.50.
On Thursday, Leslie’s shares rose 69 cents to $13.69 on Nasdaq.
Tammi Kuntz, an analyst with Morgan Keegan & Co., said the purchase price is low but the buyout is probably the right move.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
