Who Owns Leslie's Company?

Who Owns Leslie's Company?

Understanding Leslie's ownership is key to its strategy and market standing. Its 2020 IPO significantly changed who holds stakes in the company.

Leslie's, founded in 1963, is now a publicly traded entity on the Nasdaq, with its stock symbol LESL. As of July 23, 2025, the company's market capitalization stands at $96.02 million.

Who holds the reins at Leslie's?

Leslie's Pool Supplies was established in 1963 by Phil Leslie Jr. and his partner Raymond Cesmat in North Hollywood, California. Their initial focus was on building a chain of swimming pool supply stores across the Greater Los Angeles area. While specific details about their initial ownership stakes are not widely available, the partnership experienced internal disagreements regarding the company's direction.

Founding Partnership

Phil Leslie Jr. and Raymond Cesmat co-founded Leslie's Pool Supplies in 1963. They aimed to establish a retail chain specializing in swimming pool products.

Early Ownership Dynamics

By the late 1980s, differences arose between the founders concerning the company's future. Raymond Cesmat indicated his interest in selling his ownership stake.

Initial Public Offering

In the early 1990s, the company transitioned to public ownership through an IPO. This offering successfully raised $28 million by selling 47% of the company's shares.

Debt Repayment and Expansion

The capital generated from the IPO was primarily allocated to reducing existing debt and supporting the company's expansion initiatives.

Privatization Event

In 1997, the company was privatized through an acquisition valued at $140 million. This transaction was facilitated by Hancock, with support from private equity firm Leonard Green & Partners.

Foundation for Future Ownership

These foundational ownership changes set the stage for the company's evolving structure in the years that followed.

Phil Leslie Jr. attempted to buy out Raymond Cesmat in 1987, offering to purchase his partner's stock at a pre-determined price, but the offer was not accepted. This period of internal negotiation preceded the company's initial public offering in the early 1990s, a significant step in its financial history. The company's Growth Strategy of Leslie's was significantly influenced by these early ownership transitions.

Key Ownership Milestones

The early history of Leslie's Pool Supplies ownership is marked by significant shifts from a founder-led partnership to public trading and subsequent privatization.

• Founding by Phil Leslie Jr. and Raymond Cesmat in 1963.
• Internal disputes leading to Cesmat's desire to sell his stake by the late 1980s.
• Phil Leslie Jr.'s unsuccessful buyout offer to Raymond Cesmat in 1987.
• Initial Public Offering (IPO) in the early 1990s, raising $28 million.
• Privatization in 1997 for $140 million by Hancock, with Leonard Green & Partners' involvement.

The ownership structure of Leslie's, Inc. has seen significant shifts, notably its acquisition by L Catterton in 2017, a period that preceded its re-entry into public markets. This evolution culminated in its second Initial Public Offering (IPO) in October 2020.

Following its IPO in October 2020, Leslie's, Inc. saw its shares begin trading on the Nasdaq Global Select Market. The IPO itself was a substantial event, pricing 40,000,000 shares at $17.00 each, which generated total gross proceeds of $782.0 million. Of this amount, Leslie's directly received $510.0 million, while a majority-owned parent entity of L Catterton and GIC sold 10,000,000 shares, contributing $272.0 million to the total. The net proceeds for Leslie's, amounting to approximately $465 million, were primarily allocated towards repaying outstanding senior unsecured floating rate notes and for general corporate needs.

Key Stakeholders in Leslie's Ownership

Institutional investors are the dominant force in Leslie's ownership, holding a significant majority of the company's shares. This concentration of ownership often influences strategic decisions and governance.

• Institutional ownership stands at approximately 90.16% or 94.69%.
• Major institutional shareholders include Ariel Investments, Llc, Clarkston Capital Partners, LLC, BlackRock, Inc., Vanguard Group Inc, Lind Value II ApS, and Private Management Group Inc.
• Bubbles Holdings LP is the largest individual shareholder, holding 140.61 million shares, representing 75.83% as of July 2025.
• Bubbles Investor Aggregator LP also holds a substantial 45.12% stake.
• These large holdings, particularly those linked to private equity, significantly shape the company's long-term strategy and capital allocation. Understanding Revenue Streams & Business Model of Leslie's can provide further context on how these stakeholders influence operations.

The governance of Leslie's, Inc. is overseen by its Board of Directors, which includes key figures like Chairman John Strain and CEO Jason McDonell. The board composition reflects a blend of independent expertise and representation aligned with significant ownership interests, ensuring strategic direction and accountability for Leslie's Pool Supplies ownership.

Leslie's operates under a standard one-share-one-vote system, meaning each share of common stock carries equal voting power. This structure is typical for publicly traded entities, ensuring that voting rights are distributed proportionally to share ownership. While there are no indications of dual-class share structures that would grant preferential voting rights, the substantial ownership stake held by Bubbles Holdings LP, reportedly at 75.83% as of recent disclosures, grants this entity significant influence over corporate decisions and director elections, effectively shaping the direction of Leslie's company owner. This concentration of ownership likely represents the interests of former private equity stakeholders, underscoring the importance of understanding who owns Leslie's and their impact on its strategic path. The ongoing declassification of the board, aiming for all directors to be elected annually by 2027, is a move towards more direct shareholder influence over board composition.

Understanding Leslie's Stock Ownership

The voting power at Leslie's is directly tied to its common stock ownership structure. Major shareholders, like Bubbles Holdings LP, wield considerable influence over the company's strategic direction and board appointments.

• Leslie's Pool Supplies ownership is concentrated, with one entity holding a majority stake.
• The company utilizes a one-share-one-vote system for all common stock.
• Understanding major shareholders is key to comprehending Leslie's company owner dynamics.
• The board composition is designed to balance independent oversight with shareholder interests.
• Recent board changes reflect an evolving governance structure, impacting Leslie's CEO and operational management.

Leslie's, Inc. has undergone significant changes in its market valuation and ownership structure over the past few years. Since its initial public offering in October 2020, the company's market capitalization has seen a substantial decrease, reflecting shifts in investor sentiment and financial performance.

Recent leadership changes have seen Jason McDonell assume the role of Chief Executive Officer in September 2024, taking over from Michael Egeck. John Strain, the current Chairman of the Board, provided interim leadership during this transition. These operational shifts occur against a backdrop of evolving institutional investor interest.

Institutional Investor Activity (Late 2024 - Q1 2025)

Major institutional investors have adjusted their positions. BlackRock, Inc. reduced its holdings by 16.3 million shares, a decrease of 55.5%. Vanguard Group Inc also decreased its stake by 5.1 million shares, marking a 31.8% reduction in Q4 2024.

New and Increased Holdings

Conversely, Lind Value II ApS significantly increased its stake, adding 4.49 million shares (+97.7%) in Q1 2025. Ariel Investments, LLC also expanded its portfolio by 3.97 million shares (+8.5%) during Q4 2024.

Insider Buying Activity

Despite the stock's recent performance, several key insiders have demonstrated confidence through open market purchases. Individuals such as John Strain, Anthony A Iskander, Susan C Ofarrell, and Maile Naylor have acquired shares in the past six months.

Capital Allocation and Share Repurchases

The company's Board of Directors had previously authorized a share repurchase program of up to $300 million in December 2021. This program has since expired, indicating a shift in capital allocation strategies.