SGH Expands Product Portfolio with Acquisition of SPAO2
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Fresh from new ownership under the Jalex Futures Ltd group in November 2024, SGH is pleased to announce the asset purchase of Bucharest-based firm, SPAO2 SRL. The Bolton-based firm has in the last six months undertaken a series of investments within the business to increase capacity, improve fixed assets and onboard new clients.
This latest move sees the start of a new revenue line with direct to distributor sales, a first for the business, which has been trading since 1978. SPAO2 is a globally patented swimming pool (wet leisure) product that provides a unique and simple method to improve water hygiene and clarity through the introduction of oxygen into existing pump return lines in swimming pools. This process reduces the need for chemicals, is environmentally friendly and will work on any existing pool. It’s so effective that a pool left over winter that has significant green algae can be turned into clean water in a matter of days, utilising significantly less chlorine shock.
It also provides a very simple solution to a technically challenging issue, whereby raising the PH of pool water with chemicals means raising a level called Total Alkalinity at the same time, which is not desirable. SPAO2 is the only commercially available product to raise PH through oxygen alone, utilising existing pool equipment.
SGH Ltd Managing Director, Martin Jones, commented on the acquisition: “The wet leisure industry is worth $22bn globally with a 5% CAGR and is typically a higher margin sector. With the acquisition of SPAO2, it is our first foray into manufacturing and supplying products directly to distributors rather than component supply to other manufacturers. This is an exciting step for SGH, not to mention a challenge the team is excited to embrace, requiring new team members and a different go-to-market strategy.”
“It’s part of a comprehensive strategic plan the board has put together that both builds upon our existing capabilities and clients and expands into new areas. This is a very competitive industry, and it’s no secret the industry has faced several headwinds in recent years, from Brexit to COVID, skills shortages and loss of trade to international competitors.
“However, we see a great deal of opportunity for Western firms who are prepared to innovate. We have five sites in Bolton, including warehousing and logistics alongside our manufacturing, technical assembly, clean room and prototyping. There are increasing amounts of tools and business reshoring to the UK for intellectual property, supply chain and value-added reasons. The US trade tariffs recently created uncertainty that is not good for the global market, but reinforced the strength of opportunity in the UK, which retained its 10% tariff and made us more competitive against EU manufacturers.
“Our clients have been incredibly supportive of the new ownership under Jalex Futures Ltd and the investments we have made. The enhanced investment in quality control, environmental initiatives, and shortly to come online, an increase in machine range from 350 ton to 650 tons, allowing us to produce larger products, has given us more capability than ever to support their growth.”
SPAO2 sales are currently on hold whilst SGH calibrates the tool in the UK and puts in place the infrastructure to support sales. We are also producing a variant for use with Hayward pool water returns, which are common in the US, and plan to relaunch both products in Q3 2025.
Read more news from SGH here.
