Steve Hammock, president of Vista, Calif.-based Watkins Manufacturing Corp., said he was not surprised to learn that Keys has left the spa business. Representatives from Keys could not be reached for comment by press time. Spa sales are expected to finish this year nearly 17 percent below the 2004 peak of 450,000 units, according to projections by the Association of Pool & Spa Professionals. At the time, Keys predicted 30 percent to 50 percent in annual growth for its new spa line, but the industry had begun a slide just as the deal was finalized. Keys acquired the Image Spa line from Utah-based ICON Health & Fitness in 2005, a year after spa sales in North America hit an all-time high. “I think the downturn in the spa market this year made it harder for Keys to justify the investment it takes to provide their spas for mass merchants,” Hatley said. The company will continue to make exercise equipment, but is getting out of the business of building spas for sale in big-box stores such as Wal-Mart and Costco. Keys is a Dallas-based manufacturer of fitness equipment such as stationary bikes and elliptical trainers. The move would make the young company one of the larger spa makers in America.ĭave Hatley, president of the Johnson City, Tenn.-based manufacturer, said the deal with Keys will close Dec. Infinity Spas has agreed to purchase the hot tub manufacturing assets of Keys Backyard, LP.
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