Jet Line Products, Inc.

Summary

M&A Sell-Side Advisor

Kearny, NJ

Jet Line Products, Inc. is a leading family-owned and operated wholesale distributor of swimming pool supplies and equipment. The Company’s geographic footprint includes nine (9) warehouse facilities located in four (4) states (NY, NJ, TX, FL) which are further complemented by Jet Line’s e-commerce business which allows the Company to service the entire country via UPS shipments.

Jet Line was a family-owned business, with ownership spread among 15 different family members. Jet Line’s customer base includes swimming pool builders, pool service businesses and retail stores. The company grew rapidly over the last ten years under the leadership of third-generation family members. The majority of equity was held by the second-generation, who were nearing retirement and desired a full exit from the investment.

Key Challenges

COVID-19 Shutdown and Deal Pause

Engagement Highlights

Stable core business generating about $100MM of annual revenue, with $25-50MM of revenue upside each year from Amazon business
Jet Line owned much of its real estate and was open to engaging in long-term leases with a buyer to provide additional income stream for the family
Strong market position in New York and New Jersey; successful entry into new growth markets in Texas and Florida
Carl Marks Advisors ran a wide-ranging sell-side process encompassing the main strategic player in the space, as well as numerous financial buyers
Carl Marks Advisors worked to build consensus in the family about a mutually beneficial sale that provided a clean break for second generation family members while identifying a strategic buyer that offered ongoing management positions for the third generation.

Transaction completed by Carl Marks Securities LLC

Jet Line Products, Inc.

Summary

M&A Sell-Side Advisor

Key Challenges

Engagement Highlights

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