Houlihan Lokey Advises AquaCentral

Houlihan Lokey is pleased to announce that AquaCentral, a portfolio company of Tenex Capital (Tenex), has been acquired by Heritage Pool Supply Group (Heritage), a rapidly growing platform within SRS Distribution, a portfolio company of Leonard Green & Partners, LP, and Berkshire Partners. As part of the transaction, Tenex and the other AquaCentral shareholders will receive a minority equity interest in SRS Distribution alongside the existing ownership group. The transaction closed on December 10, 2021.

AquaCentral is the second largest distributor of pool equipment and supplies in the United States. The company operates under local brands Florida Water Products, Pool & Electrical Products, American Pool Supply, Bel-Aqua Pool Supply, Conely Company, Mayfield Pool Supply, Classic Pool Tile, and Noble Tile Supply. Following the combination, SRS Distribution’s Heritage Pool Supply Group has 13 distinct brands operating more than 85 branch locations across 21 states.

Tenex Capital Management is a private equity firm that invests in middle-market companies. Tenex uses an in-house team of hybrid investment professionals skilled in operational leadership, investing, and capital markets structuring to maximize long-term value creation. Tenex’s deep operating experience allows the firm to collaborate with management teams to capitalize on business and market opportunities. Tenex has successfully invested in a diverse range of industries, including industrials, business services, healthcare, building products, and auto aftermarket, among others.

Founded in 2008 and headquartered in McKinney, Texas, SRS Distribution has grown to become one of the largest and fastest-growing building products distributors in the United States. Since its inception, the company has established a differentiated growth strategy and entrepreneurial culture that is focused on serving customers, partnering with suppliers, and attracting the industry’s best talent. SRS Distribution currently operates under a family of distinct local brands encompassing more than 500 locations across 44 states.

Houlihan Lokey served as the financial advisor to AquaCentral. Houlihan Lokey’s Specialty Distribution team has earned a reputation for working with premier distribution clients, providing superior client service, and delivering outstanding results. This transaction highlights the firm’s continued success advising market-leading specialty distributors.

RELATED: Industrials, Financial Sponsors Coverage