On January 04, Latham Group Inc. (SWIM) announced the initiation of a public offering of its common stock shares. Consequently, the stock plunged deep in the after-hours session.
In the regular session, SWIM stock suffered a loss of 6.19% at $23.63 at the close. Following the announcement, the stock fell down to $21.42 in the after-hours with a loss of 9.35%.
The maker of in-ground residential swimming pools, Latham Group Inc. was founded in 2018. Currently, the company has a market capitalization of $3.02 billion with its 119.85 million shares outstanding. As per the data, the past three months have been very productive for the stock with a gain of 64.67%. SWIM stock has lost 5.59% year to date with a 2.96% loss in the past five days.
SWIM’s Public Offering
As per Tuesday’s announcement, the company has offered 12,000,000 shares of its common stock in a public offering. Moreover, SWIM will also grant a 30-day option to the underwriters for buying 1,800,000 additional shares of its common stock.
Furthermore, the net proceeds from the offering are intended for buying an equivalent number of common stock shares from some stockholders. These principal stockholders are affiliates of Pamplona Capital Management, LLC and Wynnchurch Capital, L.P. Further, it will also include a small percentage of SWIM’s directors’ and executive officers’ shares.
In addition, the joint book-running managers and underwriters of the offering are Barclays and BofA Securities.
Acquisition of Radiant Pools
On November 30, the company announced the acquisition of Radiant Pools for $90 million approx. Hence, SWIM has expanded its product portfolio with the addition of vinyl-lined, aluminum-walled swimming pools. These products not only provide solutions for various backyard pool applications but are also affordable. Further, these pools have the capacity and ability to be installed in various positions including above ground, below ground, or partially in-ground and partially above-ground on slopes.
The vinyl-lined, aluminum-walled category of swimming pools was invented by Trojan Pools in 1957. The acquisition of Trojan Pools resulted in the formation of Radiant Pools in 2005.
SWIM’s Financials
In the third quarter of 2021, the company saw an increase of 27.0% year over year in its net sales, to $162.0 million.
SWIM incurred a net loss of $11.3 million in the third quarter of 2021, against a net income of $17.7 million in the year-ago quarter.
