Leonard Green & Partners and Hancock Park Associates complete Leslie's Poolmart merger

Business Wire, June 11, 1997

CHATSWORTH, Calif.--(BUSINESS WIRE)--June 11, 1997--Leslie's Poolmart Inc. (formerly Leslie's Poolmart - NASDAQ:LESL) Wednesday announced that it has completed the previously announced merger of the company for $14.50 per share in cash in a going private transaction.

The merger, effective June 11, was consummated after shareholders overwhelmingly approved a plan of merger and a related change in the company's state of incorporation. The transaction was led by Leonard Green & Partners, L.P., Hancock Park Associates and members of the company's management. The total value of the transaction was approximately $140 million.

Leslie's also announced that it has completed the issuance of $90 million in Senior Notes as part of the acquisition financing. The notes, rated B by Standard & Poor's and B2 by Moody's, have a coupon of 10-3/8% and mature on July 15, 2004. BT Securities managed the note offering.

"We are happy to complete what has been a long, complicated process for the company and its shareholders," said Brian P. McDermott, president and chief executive officer of Leslie's. "We appreciate the support and encouragement we have received from our shareholders, and we look forward to achieving success for our new investors in the bond market."

Founded in 1963, Leslie's Poolmart is the country's leading specialty retailer of swimming pool supplies and related products. The company currently markets its products through 278 retail stores in 27 states and through a nationwide mail-order catalog.

Leonard Green & Partners, L.P. is a Los Angeles-based private merchant banking firm that specializes in organizing, structuring and sponsoring management buyouts of established companies. LGP has directed a number of notable transactions, including the $1.1 billion acquisition of PayLess Drug Stores by Thrifty Corp. to form Thrifty PayLess Inc.

Leonard Green & Partners, L.P. currently has in excess of $500 million of private equity capital under management.

CONTACT: Leonard Green & Partners, L.P.

John G. Danhakl, 310/954-0435

or

Hancock Park Associates

Michael Fourticq, 310/553-5550