Fluidra (XMAD:FDR, Financial) (Spain) is a global manufacturer and supplier of commercial and residential pool and spa equipment. The company does its own research and development, manufacturing, and marketing and distribution for its products and holds approximately 1,400 patents worldwide. After its merger with Zodiac, Fluidra became a global leader in the manufacturing and supply of residential and commercial swimming pool equipment, controlling around 18% of global market share. In our view, the pool market is growing at an impressive pace, and we appreciate that the majority of Fluidra’s revenue stems from aftermarket repair and maintenance work, which is being performed on a growing installation base. The company’s share price has fallen over the course of the year along with the broader market due to fears of growth reversion. We believe today’s share price offers an attractive entry point into a company with a strong management team, sizable margin opportunity and the ability to execute value-accretive acquisitions. We believe revenue trends are likely to prove more resilient than market expectations because of Fluidra’s high aftermarket exposure.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund second-quarter 2022 commentary.
