Realco sells its Pool & Spa activities to Spanish leader Fluidra
Regulated Information – Confidential Information
Press release 25 March 2021, 8h30
With the sale of the Splash and Zen brands, Realco is refocusing on its core business. Its objective is to accelerate the development and growth of enzyme-based hygiene solutions that are more effective and environmentally friendly.
This Wednesday, March 24, 2021, Realco signed an agreement to sell the assets of its Splash and Zen brands to the Spanish company Manufacturas Gre SAU, a subsidiary indirectly owned by the Fluidra Group. The transaction is expected to conclude in September 2021, allowing the seller and buyer companies to prepare for the transition. The transaction price consists of a fixed price of 3.5 million euros and a variable price, equivalent to 10% of the turnover, to be achieved in 2022, 2023 and 2024 on these brands.
“This deal is the result of a long-standing strategic reflection”, explains George Blackman, CEO of Realco. “With a turnover of almost 5 million euros in 2020, the Splash and Zen product ranges are market leaders in pool and spa maintenance in the Belgian retail sector, but they are more in the realm of classic chemistry. However, since I assumed my role in 2017, our teams have been constantly consolidating their activities around products and services with high added value for businesses and individuals, and which are also environmentally friendly. “
This deal will not put an end to the long partnership between Realco and Fluidra. On the contrary, the collaboration will be strengthened through various mechanisms. The door remains open for the joint development of products of natural origin or based on enzyme technology. In addition, Realco will continue to manufacture certain chemical products for Fluidra for the next 4 years and is committed to providing marketing and sales services to ensure a smooth transition of the Splash and Zen business. In terms of brand continuity, nothing changes for the distribution network and the end customers, who will even benefit from an expansion of the range.
The sale will enable the Walloon biotech to accelerate its international growth, particularly in one of its core markets: the fight against biofilms, which are one of the main sources of contamination for Realco’s customers. The transaction will also provide the company with the means to further invest in Eezym, its range of enzyme-based cleaning products for consumers.
Finally, the capital released also opens up avenues for future growth, both organically and through possible acquisitions.