SCS expands through Australasian acquisitions

The Australasian portable spa sector has followed the international trend towards consolidation with the purchase of the assets of New Zealand manufacturer Leisurite by Australian company SCS Industries.

This is the second recent aggressive move by the spa manufacturer in an attempt to increase market share as worldwide sales contract. SCS bought the manufacturing assets and all of the Leisurite New Zealand retail outlets. SCS said in a statement that the Leisurite manufacturing facility in New Zealand will be closed and the Leisurite brand of spas will be manufactured in Australia by SCS Industries to ensure that they pass the same stringent quality testing as all other spas manufactured by SCS, which include Signature, Bullfrog, Cyclone and Infinity.

This move follows the purchase of assets of fellow Australian manufacture, Monarch Spas, at the end of 2008. Monarch had gone into liquidation in November, and SCS acquired four of Monarch’s top selling spa moulds and all of their swim spa moulds. SCS said consolidation in the spa manufacturing sector made perfect sense due to economies of scale, and predicted rationalisation of the sector would continue.