TNCP, the subsidiary of TrueNorth Capital Partners, acted as exclusive financial advisor to LPI in its acquisition of the assets of Vortex Whirlpool Systems, dba Catalina Spas.

LPI, a Tennessee-based manufacturer of acrylic hot tubs and tanning beds, acquired Catalina Spas, currently headquartered in Perris, CA.

The purchase is part of LPI’s strategic plan to open new channels of distribution and tap into a new customer base by offering a high-end spa brand. LPI distributed product through 37 stores nationally and more than 100 independent dealers. Catalina will add an additional 130 dealers in the U.S., Canada and Europe.

“Boyd Cargill has done an amazing job of innovating the spa industry since 1977, and building and managing a leading quality consumer brand,” said David Hatley, CEO of LPI. “We are proud and excited to have the opportunity to continue the Catalina brand with the quality and performance it’s loyal dealer base has come to expect over the years.”

LPI will maintain the Catalina Spas brand and plans to incorporate the Catalina line into its new 320,000 square foot Johnson City, TN facility.

“This acquisition is our first of hopefully several as we continue to fill our manufacturing capacity at our new Tennessee facility. TrueNorth has been providing LPI with financial advisory assistance for more than four years. During this time, we have seen our company grow significantly in revenues and profitability,” Hatley added.

TrueNorth helped LPI with the negotiation and execution of the transaction and secured short-term financing needed to bridge the acquisition.