Leslie’s announces pricing of IPO

US-based swimming pool manufacturer Leslie’s has priced its previously announced initial public offering (IPO) to raise up to USD 736.00 million.

Under the terms of the stock market flotation, the company is offering 30.00 million shares of its common stock, while parent company L Catterton will also sell 10.00 million stocks as part of the transaction.

An additional 6.00 million scrips will be offered to joint underwriters Goldman Sachs, Morgan Stanley and BofA Securities as part of a 30-day overallotment option.

Leslie’s is expecting to price the sale of these stocks at between USD 14.00 and USD 16.00 apiece.

The company first announced plans to list on Nasdaq under the symbol LESL earlier this month.

Leslie’s intends to use the net proceeds of this offering to repay its outstanding senior unsecured floating rate notes due 2024, the value of which stood at USD 390.00 million at 27th June 2020.

Any remaining cash will be used for working capital and general corporate purposes.

Founded in 1963, Leslie’s is billed as the largest direct-to-consumer brand in the USD 11.00 billion US swimming pool and spa care industry, serving residential, professional and commercial consumers.

Its products are marketed through more than 900 physical locations and multiple digital platforms.

Leslie’s is expecting to generate adjusted earnings before interest, taxes, depreciation and amortisation of between USD 182.20 million and USD 185.50 million in fiscal 2020, compared to USD 160.00 million in 2019.

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In the nine months ended 27th June 2020, the group posted sales of USD 730.92 million, up 16.0 per cent from USD 629.98 million in the corresponding period of 2019.

Gross profit totalled USD 294.08 million in Q1-3 2020 (Q1-3 2019: USD 248.43 million).

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 257 IPOs of US-based companies announced in 2020 to date.

In the largest of these, blank check company Pershing Square Tontine Holdings raised USD 4.00 billion in a stock market flotation on the New York Stock Exchange.

© Zephus Ltd


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