Latham Group Acquires Freedom Pools
Rhea-AI Summary
Latham Group (Nasdaq: SWIM) acquired Freedom Pools, a fiberglass pool manufacturer and installer in Australia and New Zealand, with the transaction completed on February 26, 2026. The deal was funded with cash on hand for ~$17 million and is expected to add about $20 million in net sales and $4 million in adjusted EBITDA annually, before synergies. Freedom Pools operates manufacturing sites in Perth, Adelaide, and Brisbane and will join a dual-brand strategy alongside Narellan Pools to strengthen direct-to-consumer retail through display centers.
Positive
- Adds approximately $20 million in annual net sales
- Contributes approximately $4 million in adjusted EBITDA annually
- Purchase funded with cash on hand, avoiding immediate dilution
- Expands manufacturing footprint with sites in Perth, Adelaide, and Brisbane
- Establishes direct access to Western Australia (Perth), a fast-growing market
Negative
- Purchase price of approximately $17 million may pressure near-term cash reserves
- Integration of dual-brand operations could incur execution costs and operational risk
News Market Reaction – SWIM
On the day this news was published, SWIM gained 11.80%, reflecting a significant positive market reaction. Argus tracked a peak move of +23.3% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $110M to the company's valuation, bringing the market cap to $1.04B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SWIM fell 1.64% while key building-products peers like JELD (+5.85%), APOG (+0.64%), NX (+0.69%) and JBI (+1.04%) mostly traded higher, suggesting a stock‑specific setup rather than a sector-wide move.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 06 | Accretive acquisition | Positive | +41.5% | All-cash Coverstar Central acquisition touted as immediately accretive to earnings. |
The only prior acquisition headline in the period triggered a strong positive share reaction, aligning with its upbeat, accretive framing.
Over the past several quarters, Latham has used targeted acquisitions to deepen its position in key pool product categories. On Aug 2, 2024, it acquired Coverstar Central in an all‑cash deal that was described as immediately accretive to earnings and aimed at expanding automatic safety covers and boosting Adjusted EBITDA margins; shares rose 41.48% on that news. Today’s Freedom Pools acquisition similarly emphasizes earnings accretion and strategic expansion in Australia and New Zealand, fitting the same bolt‑on playbook.
Historical Comparison
Past acquisition news (Coverstar Central in 2024) saw a 41.48% gain. Today’s Freedom Pools deal is also framed as immediately accretive and strategically expanding fiberglass pools.
Latham has pursued bolt‑on acquisitions such as Coverstar Central in 2024 and Freedom Pools in 2026 to expand automatic safety covers and fiberglass pool reach across North America, Australia, and New Zealand.
Market Pulse Summary
The stock surged +11.8% in the session following this news. A strong positive reaction aligns with Latham’s history of being rewarded for accretive acquisitions; the prior Coverstar Central deal saw a 41.48% move. The Freedom Pools purchase adds $20 million in net sales and $4 million in adjusted EBITDA on an annualized basis. Investors would still need to track integration execution, realized synergies, and any changes in competitive dynamics across Australia and New Zealand to judge the durability of such gains.
Key Terms
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
- Combination Creates a Market-Leader in Fiberglass Pools Across Australia and New Zealand
- Transaction Expected to be Immediately Accretive to Earnings
LATHAM, N.Y., March 03, 2026 (GLOBE NEWSWIRE) -- Latham Group, Inc. (Nasdaq: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, today announced that it has acquired Freedom Pools, a fiberglass pool manufacturer and installer operating in Australia and New Zealand. The transaction was completed on February 26, 2026.
The acquisition is expected to be immediately accretive to Latham’s earnings, adding approximately
Sean Gadd, President and CEO of Latham Group, commented, “We are pleased to partner with such a highly regarded company as Freedom Pools. Their award-winning reputation reflects a deep commitment to product quality, innovation, and service excellence – values that strongly align with those of Latham. This transaction expands our presence in Australia and New Zealand – markets where fiberglass pools have a strong foothold and provides a strategic entry into new markets in Western Australia, including Perth – the fastest-growing city in the country.
With more than 50 years of history, Freedom Pools is one of Australia’s longest standing and most highly awarded fiberglass pool builders. The company designs, manufactures, and exports a broad range of fiberglass pool models and spa products, with operations in Australia and New Zealand. Freedom Pools operates manufacturing facilities in Perth, Adelaide, and Brisbane, supported by display centers across Australia, while in New Zealand the company currently partners locally to deliver its extensive pool collections.
This acquisition complements Latham’s existing presence with Narellan Pools, which Latham acquired in 2019, and enhances its ability to execute a direct-to-consumer strategy through Freedom’s display centers, where prospective customers can experience fiberglass pool models firsthand and receive expert guidance. Narellan and Freedom will operate under a dual-brand strategy going forward.
“Since our founding in the 1970s, Freedom Pools has been a pioneer in fiberglass pool manufacturing, and we are proud to have grown into one of the leading players in the Australia and New Zealand markets,” commented Grant Craig, General Manager of Freedom Pools. “By leveraging Latham Group’s scale and experience and given our shared commitment to delivering high-quality fiberglass pools, this partnership positions Freedom to enter its next phase of growth.”
About Latham Group, Inc.
Latham Group, Inc., headquartered in Latham, NY, is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. Latham has a coast-to-coast operations platform consisting of approximately 1,850 employees across around 30 locations.
Forward-Looking Statements
All statements contained in this press release other than statements of historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. See our Annual Report on Form 10-K and subsequent reports we file with the SEC for information regarding such factors. We cannot guarantee future results, levels of activities, performance or achievements.
These forward-looking statements reflect our views with respect to future events as of the date hereof or the date specified herein. You should not place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof. Our forward-looking statements further do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may undertake.
Contact:
Lynn Morgen
Casey Kotary
ADVISIRY Partners
lathamir@advisiry.com
212-750-5800
FAQ
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