Acquisitions and Restructuring

6 Months Ended

Jun. 28, 2025

Acquisition, Restructuring and Related Activities [Abstract]

16. Acquisitions and Restructuring

Acquisition and restructuring related expense, net consists of the following (in thousands):


	Three Months Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Business restructuring costs (income), net	$	(8)	$	284	$	205	$	788
Acquisition transaction and integration costs	1,573		555		3,286		555
Total	$	1,565	$	839	$	3,491	$	1,343

Restructuring

During the three months ended June 28, 2025, the Company incurred a reduction in expense of $0.2 million to finalize the relocation of its corporate office functions to Charlotte, North Carolina from Berkeley Heights, New Jersey. The finalized total cost to execute the program was $5.7 million.

During the third quarter of 2023, the Company initiated programs to centralize and consolidate operations and professional services in Europe. For the three and six months ended June 29, 2024, the Company incurred $0.3 million and $0.7 million of expense related to the programs, respectively. The total costs incurred to execute the programs were $3.2 million.

The following tables summarize the status of the Company’s restructuring related expense and related liability balances (in thousands):


			2025 Activity
	Liability as of December 31, 2024		Costs Recognized		Cash Payments		Liability as of June 28, 2025
One-time termination benefits	$	1,534	$	205	$	(363)	$	1,376

Other	28		—		(28)		—
Total	$	1,562	$	205	$	(391)	$	1,376


			2024 Activity
	Liability as of December 31, 2023		Costs Recognized		Cash Payments		Non-cash charges		Liability as of June 29, 2024
One-time termination benefits	$	2,353	$	385	$	(2,022)	$	—	$	716
Facility-related	—		160		(160)		—		—
Other	6		243		(310)		67		6
Total	$	2,359	$	788	$	(2,492)	$	67	$	722

Restructuring costs are included within acquisition and restructuring related costs on the Company’s unaudited condensed consolidated statements of operations, while the restructuring liability is included as a component of accrued expenses and other liabilities on the Company’s unaudited condensed consolidated balance sheets.

Acquisitions

On June 26, 2024, the Company acquired the equity interests of ChlorKing HoldCo, LLC and related entities (“ChlorKing”). The acquired business includes pool saline chlorinators and UV disinfection systems serving the commercial pools and water treatment market segments. The acquisition broadens the Company’s commercial portfolio of products and expands the market of commercial customers while furthering the Company's commitment to sustainable and energy-efficient technology for both commercial and residential pools. The acquisition is included in our North America segment.

The consideration paid net of cash acquired was $55.2 million. The purchase price was funded with cash on hand. For the three and six months ended June 28, 2025, transaction expenses recognized for the acquisition were $1.6 million and $3.3 million, respectively. These expenses are included within acquisition and restructuring related costs on the Company’s unaudited condensed consolidated statements of operations. The acquisition accounting was complete as of December 31, 2024.

Hayward Holdings, Inc. 10-Q