Leslie’s Poolmart, Inc. To Acquire Phoenix-based Commercial Pool Supply Company

July 25, 2011: Leslie’s Poolmart, Inc. (“Leslie’s”), the world’s largest retailer of pool and spa supplies, today announced that it has entered into a definitive agreement to acquire certain business assets of Jasper’s Clear Pool Wholesale Co. (“Jasper’s”), an Arizona corporation. The acquisition is expected to significantly expand Jasper’s and Leslie’s commercial business segments in Arizona. Closing of the transaction, anticipated in August 2011, is subject to certain closing conditions.

Jasper’s has been serving the commercial pool supply segment in Arizona for many years. They have specialized in providing outstanding service to the hotel, motel and apartment industries.

Fred Burkhardt, owner of Jasper’s, believes that both organizations will be strengthened by their combined efforts, allowing the company to meet its customers’ needs more effectively. “When I decided to expand within the pool supply business, I immediately thought of Leslie’s as the perfect company to continue to develop what we’ve built,” said Mr. Burkhardt. “Our General Manager, Robert Thompson and I couldn’t be happier for our staff and our customers. Leslie’s is an organization with an outstanding record of growth and a leadership team with the highest integrity.”

After the acquisition, customers of Jasper’s will continue to receive the same high-quality services and work with the same great people they have in the past as Jasper’s’ sales and service employees are continuing on with Leslie’s, under the leadership of current General Manager Robert Thompson.

“We’ve admired Jasper’s for many years. The synergies and shared values of our two companies make this acquisition ideal for the company, our employees and our customers” says Larry Hayward, Chief Executive Officer and Chairman of Leslie’s. “We are thrilled to have the associates and customers of Jasper’s join our team. Combining our efforts allows us to better serve this business segment in Arizona and beyond.”

About Leslie’s:
For almost fifty years, pool owners have trusted the experts at Leslie’s for the solutions they need to keep their pool and spa clean, safe and ready to enjoy. Leslie’s is the world’s largest retailer of pool and spa supplies and operates 688 retail stores and commercial service centers nationwide, as well as catalog (800-LESLIES) and internet (www.lesliespool.com) sales.

About Jasper’s:
Jasper’s Clear Pool Wholesale Supply Co. is a wholesale distributor of commercial swimming pool chemicals, equipment, parts and related installation and repair services to hotels, apartments and health clubs throughout the state of Arizona. With two facilities located in Phoenix and Tucson and under the sole ownership of Fred Burkhardt, Jasper’s has grown to become a leading swimming pool supplier for the commercial business segment in Arizona. For more information, contact Fred Burkhardt at (480) 507-5331.

Leslie’s Expands in Key States

Leslie’s Poolmart earlier this month began the first stage of its 2011 expansion efforts with the official grand openings of new stores in key states such as Arizona, California, Florida and Texas, as well as other regions.

“Some of these markets have been hit hard on new-pool builds,” said Steven Ortega, executive vice president and CFO of Phoenix-based Leslie’s, “but not on the maintenance side. And our focus is on the pool owner.”

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Overall, the company plans to open 49 new stores (in addition to the 30 it opened in 2010) across the country by late spring, officials said. Expansion is heaviest in the South and Sunbelt states, followed by the Southwest, Mid-Atlantic and Northeast.

In the Western United States, new stores are located in Long Beach, San Marcos and Yucaipa, Calif., as well as Gilbert, Ariz.

Leslie’s fundamental strategy of consistent growth received a boost late last summer when private equity firm CVC Capital Partners purchased an undisclosed number of minority shares in the company.

Meanwhile, the management of at least one local independent retailer, Maddy’s Pool Supplies in Gilbert, was largely unfazed by the news. Co-owner Lisa Sleezer noted her service, remodel and retail firm has experienced record months since November, even though another large pool supply chain entered the market earlier in the year.

“I’m not at all concerned,” Sleezer said. “There are more than 500,000 pools in the metro Phoenix area, so we’re going to be just fine.” In addition to new stores in Arkansas, the Carolinas, Oklahoma and Virginia, Leslie’s is expanding into Newnan, Ga., and the Florida cities of North Port, Sarasota and Tampa; a Belle Isle store also is being relocated.

Multiple industry sources in the Sunshine State report that new-pool building remains markedly down from the boom years of the mid-2000s. And in recent months, permits for the majority of Florida counties have been flat or only slightly up from 2010 figures, according to tracking service HBW Inc.

Leslie’s now operates 660 retail locations in 35 states.