Growth Plans
In 1999, we became the third private equity owners of Polaris, which had a long established leading market position and brand name in automatic swimming pool cleaners. Polaris had a 90% market share in pressure-side cleaners and was planning on entering the suction-side cleaner market as well as other swimming pool product categories. We were committed to support management’s plans to grow the business through expanding the product line into complementary product categories. We also worked with management to consolidate 5 manufacturing facilities into one 200,000 s.f. facility; convert the sales force of independent reps to internal employees; install an ERP system and invest in R&D for new products. Under our ownership, the business introduced new suction-side and pressure-side cleaner technologies and also entered the swimming pool lighting and remote controller
product lines.

Strategic Aquisitions
Furthermore, we worked with Eric Kownacki and his team to acquire two highly accretive product lines (in-ground cleaning systems and salt chlorine generators) and also purchase the remaining 40% of our European distribution joint venture. These new products and acquisitions allowed us to leverage our manufacturing expertise, strong sales and distribution channels and loyal customer base of professional pool builders all under the Polaris brand name.

Successful Sale
As a result of these initiatives, we increased EBITDA from $18 million to over $33 million in 5 years and then sold the business to a strategic buyer (French public company Zodiac), generating attractive returns to our investors and management partners. We realized a multiple expansion upon exit due to the improvements we made to the business: dedicated sales force, impeccable customer service and loyalty, efficient manufacturing, product diversification and scale