Watkins Acquires American Hydrotherapy Systems

Leading Hot Tub Manufacturer Adds Rotationally Molded Spa Business to Expand Selection

Dec 20, 2011, 11:15 ET from Watkins Manufacturing

VISTA, Calif., Dec. 20, 2011 /PRNewswire/ -- Watkins Manufacturing, leading maker of hot tubs worldwide, announces the acquisition of the assets of American Hydrotherapy Systems (AHS), manufacturer of Freeflow Spas® and a leader in the rotationally molded spa and business category.  With the purchase of Ontario, California-based AHS, Watkins adds roto-molded Freeflow Spas to its portfolio of premium Watkins spa brands that includes Caldera® Spas and HotSpring® Spas, the world's number one selling brand.  Terms of the transaction were not disclosed.

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"The addition of Freeflow Spas to our family of quality hot tub brands fits perfectly with our consumer strategy to deliver the right products to the right markets at the right prices," says Steve Hammock, President of Watkins Manufacturing.  "We want our Watkins-brand retailers, whenever possible, to be a one-stop-shop in fulfilling the hot water relaxation needs of today's discriminating consumer.  Integrating this quality selection of Freeflow Spas products into our retail offering will allow shoppers to get the hot tub they want from us, whether they choose an entry level model or the most premium spa." 

"Our business was not 'overtly for sale' but Watkins presented us with an interesting opportunity we simply had to consider," explains Bob Gawlik, general manager, American Hydrotherapy Systems.  "Over the years, many other companies have approached us. But Watkins, an icon in our industry, was the first suitor that we believed would perpetuate what we have worked so hard to build in a manner we think will honor the company's values."  

"Over the years, we've been very impressed with the product offering developed by, and the integrity of, the AHS team," says Hammock.  Over the next several quarters, the AHS business will transition to Watkins worldwide headquarters in Vista, California. "Watkins celebrated the manufacture of our one-millionth hot tub in September 2011, and together with this strategic acquisition of AHS we believe we are positioned for continued growth in the future," adds Hammock.

About Watkins Manufacturing Corporation
Watkins Manufacturing was established in 1977, in Vista, California. They are the world's largest manufacturer of hot tubs, including Hot Spring® Spas, Limelight® Hot Tubs, Hot Spot® Spas and Caldera® Spas. The Watkins Dealer network extends into all 50 states and over 60 countries. Watkins is a division of Masco Corporation, a Fortune 500 company whose products include Delta® Faucets, KraftMaid® Cabinets, and Behr® paint.

SOURCE Watkins Manufacturing