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Acquisitions | 3 Months Ended
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Mar. 29, 2025
Business Combinations [Abstract] |
Acquisitions | 3.ACQUISITIONS Coverstar Central, LLC On August 2, 2024 (the “Acquisition Date”), Latham Pool Products acquired Coverstar Central, LLC (“Coverstar Central”) for total consideration of $71.5 million (the “Coverstar Central Acquisition”). The total consideration included $66.5 million in cash (including a net working capital adjustment of $1.2 million) and a non-cash settlement of preexisting obligations of $4.9 million. Preexisting relationships are effectively settled since such a relationship becomes intercompany upon the acquisition and is eliminated in post-combination financial statements. The cash consideration was funded with cash on hand. The Company incurred $0.9 million in transaction costs. The results of Coverstar Central’s operations have been included in the condensed consolidated financial statements since that date. Coverstar Central is an automatic safety cover dealer based in the United States. The acquisition allows for vertical integration of the Company’s automatic safety cover product category. Additionally, the acquisition provides the Company with an increase in dealer and franchise relationships. The Company accounted for the Coverstar Central Acquisition using the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations. This requires that the assets acquired and liabilities assumed be measured at fair value. Inventories were valued using the comparative sales method. Specific to intangible assets, backlog and customer relationships were valued using the multi-period excess earnings method. The Company recorded the assets acquired and liabilities assumed at their respective fair values as of the Acquisition Date. The fair value of assets acquired and liabilities assumed recorded in the condensed consolidated financial statements may be subject to adjustment pending completion of final evaluation. These fair value estimates will be reevaluated and adjusted, if needed, during the measurement period of up to one year from the Acquisition Date, and recorded as adjustments to goodwill. The following summarizes the purchase price allocation for the Company’s acquisition of Coverstar Central: ​
​ | ​ | ​ | ​
(in thousands) |  | August 2, 2024
Total consideration | ​ | $ | 71,516
Allocation: | ​ |  |
Cash | ​ |  | 2,084
Trade receivables | ​ |  | 7,020
Inventories | ​ |  | 4,293
Prepaid expenses and other current assets | ​ |  | 53
Property and equipment | ​ |  | 344
Intangible assets | ​ |  | 38,220
Deferred tax assets | ​ |  | 43
Total assets acquired, excluding goodwill | ​ |  | 52,057
Accounts payable | ​ |  | 131
Accrued expenses and other current liabilities | ​ |  | 2,457
Total liabilities assumed | ​ |  | 2,588
Total fair value of net assets acquired, excluding goodwill | ​ |  | 49,469
Goodwill | ​ | $ | 22,047
​ The excess of the total consideration over the fair value of the identifiable assets acquired and the liabilities assumed in the acquisition was allocated to goodwill in the amount of $22.0 million. Goodwill resulting from the acquisition was attributable to vertical integration, the expanded market share and broader geographical footprint. The goodwill recognized is deductible for tax purposes. The Company allocated a portion of the total consideration to specific intangible asset categories as follows: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Fair Value | ​ | Amortization
Definite-lived intangible assets: |  | (in thousands) |  | Period (in years)
Dealer relationships | ​ | $ | 37,800 |  | 13
Order backlog | ​ |  | 420 |  | 1
​ ​ Pro Forma Financial Information (Unaudited) The following pro forma financial information presents the statements of operations of the Company with Coverstar Central as if the acquisition occurred on January 1, 2024. The pro forma results do not include any anticipated synergies, cost savings or other expected benefits of the acquisition. The pro forma financial information is not necessarily indicative of what the financial results would have been had the acquisition been completed on January 1, 2024 and is not necessarily indicative of the Company’s future financial results. ​
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​ | ​ | Fiscal Quarter Ended
​ | ​ | March 29, | ​ | March 30,
(in thousands) |  | 2025 |  | 2024
Net sales | ​ | $ | 111,420 | ​ | $ | 111,584
Net loss | ​ | ​ | (6,270) | ​ | ​ | (6,428)
​ The pro forma financial information presented above reflects the effects as a result of the acquisition, including the amortization expense from acquired intangible assets, the additional cost of sales from acquired inventory, the elimination of intercompany transactions and the removal of certain costs (primarily payroll costs) that would not have occurred and any related tax effects. Transaction costs for Coverstar Central are reflected within pro forma net loss for the fiscal quarter ended March 30, 2024. Other Business Combinations During the fiscal quarter ended March 29, 2025, the Company completed the acquisition of two autocover dealers located in New York and Tennessee that qualified as a business combination. This transaction resulted in an increase to goodwill and intangibles, but was not material to our condensed consolidated financial statements, and as a result, additional business combination disclosures for this acquisition have been omitted.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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