As previously reported, Cody Pools has entered the Florida market by acquiring Challenger Pools, a 30-year-old firm based in Tampa.
The purchase, for an undisclosed price, closed in early February and marks Cody’s first acquisition.
Cody President/CEO Mike Church discussed how the transaction came about and explained some of his plans for the Florida operation.
The transaction occurred after Challenger Founder Bruce Esquinaldo approached about purchasing the company as a way to continue it after he and his wife, Caroline, retire. “[Bruce Esquinaldo’s] employees have been with him 10 or 15 years, and he was trying to take care of them,” Church said.
After examining the 30-year-old firm, Church deemed it a good fit. “They’re a very clean company, like Cody Pools. They’re a subcontractor-based company like we are, and they control their costs pretty well.”
Another commonality: Challenger works mostly with homeowners rather than home builders so it doesn’t rely so much on housing construction. “That was another thing that attracted me to the company,” Church said.
The Esquinaldos will remain through the end of the year before retiring. Challenger’s brand and 17-person staff are expected to stay in place.
However, Church does plan to make some changes. He expects Challenger, which has worked exclusively in the residential space, to enter the commercial market throughout the Sunshine State. In addition to giving the Tampa operation a technological upgrade, he aims to expand it southward by opening an office in the Sarasota area in 2019. “They build about a 30-mile radius from their office. We’ll expand it,” Church said.
There are currently no plans for Cody to move into any other states, Church said.
Last year, Cody reported sales of approximately $57 million. Challenger generates about $8.5 million, Church said. Cody, founded in 1994, has 10 locations serving the Austin, San Antonio and Houston metro areas.
Cody Pools has topped the Pool & Spa News Top 50 Builders list five years in a row.
