Aqua Lung (1943), a company history

So, the to the ‘T’ word

We’ve been asked lately about our tariff strategy, as an outdoors brand that sources in China and sells in the US. The truth is, like everyone else, we’re scrambling. In fact, I’ve just booked tickets to go to China this Saturday to take in the Canton Fair and visit our 2 suppliers, in the hope that we can negotiate a proper strategy forward. I also know from experience that suppliers with factories off mainland China (e.g. Cambodia, Vietnam, Bangladesh etc.) tend to turn up at the fair.

I’ve also noticed that some of the bigger Chinese suppliers are setting up manufacturing in these other jurisdictions. This isn’t a recent phenomenon by the way. There is nobody, in my opinion, like the Chinese to teach us about the future and hedging. This is another example.

As mentioned in the last couple of weeks, we’re planning a new launch and a July delivery from China. Face to face is the best way to work through this. Hence I’m headed East.

We’re looking at other options too. Post Covid we had a really good look at Mexico - again to hedge, and to source close to our big market. But the expertise didn’t exist, and materials would still have to come from China, hence increasing lead time and making the process more complex and open to error. So we shied away. But all options are on the table right now. Also, as the situation is dynamic, we can’t jump into anything either.

I’ll let you know how the trip goes next week, from China.

Aqua Lung: The Incredible Journey from Wartime Innovation to Diving Icon

The Revolutionary Beginning: 1943-1950

Firstly - for complete transparency - I’m a HUGE Cousteau fan. And one of the biggest thrills of my life was earning my first diving license on the Great Barrier Reef in 2001. So I’m biased!

Now. Picture this: Nazi-occupied France, 1943. Not exactly where you'd expect a revolution in underwater exploration to begin, right? But that's exactly where two remarkable visionaries—Jacques-Yves Cousteau and Émile Gagnan—teamed up to create something that would forever change how humans experience the underwater world.

Cousteau wasn't always the ocean legend we know today. Born in 1910 in the small French town of Saint-André-de-Cubzac, he was a naval officer with a growing obsession for underwater exploration. Here's a wild bit of fate: a serious car accident in 1936 left him with broken arms, and doctors recommended swimming as therapy. Talk about a silver lining! This accident literally pushed him toward his life's calling.

Meanwhile, Émile Gagnan was working his engineering magic at Air Liquide, a French industrial gas company. The guy was a wizard with gas-handling tech. During the war, with gasoline in short supply, he'd created this clever valve that could deliver gas on demand at reduced but steady pressure for car engines.

When these two minds collided, magic happened. Cousteau approached Air Liquide with this crazy idea about breathing underwater freely, and Gagnan thought, "Hey, maybe my car regulator could work for this?" He tinkered with his design, and boom—they created the "détendeur Cousteau-Gagnan," the world's first practical demand regulator for diving.

In June 1943, they tested their prototype in the Marne River near Paris. Imagine that moment—Cousteau swimming freely underwater, breathing naturally, no airhose connecting him to the surface. It was revolutionary! By 1945, they'd polished their design and branded it the "Aqua-Lung."

The first year was pretty humble—they made about 300 units and brought in around 100,000 francs (about $20,000 in 1943 money). Not bad for a startup during wartime! Air Liquide had invested roughly 50,000 francs ($10,000) to get things rolling, so they were already seeing returns despite the chaos of post-war Europe.

The Larger-Than-Life Founders

Let's talk about these two characters, because they weren't just inventors—they became legends in completely different ways.

Cousteau turned into an absolute superstar. After co-creating the Aqua Lung, his fame went through the roof. His 1956 documentary "The Silent World" wasn't just some underwater film—it won the Palme d'Or at Cannes and hauled in over $3 million worldwide. That's like $32 million today! For a documentary! In the 1950s!

By the '60s, Cousteau was running a full-blown media empire. "The Undersea World of Jacques Cousteau" TV series grabbed a mind-blowing 26 million viewers per episode in America alone. Every kid knew his red beanie hat, and his research ship Calypso became as famous as the man himself.

The guy was everywhere. Time Magazine slapped him on their cover in 1970, calling him "a latter-day Verne and Darwin rolled into one"—not bad! He wrote or co-wrote over 50 books that sold around 5 million copies in 20 languages. He produced more than 120 TV documentaries and snagged three Oscars along the way.

While Cousteau was becoming the face of underwater exploration, Gagnan was the behind-the-scenes genius. He wasn't splashed across magazine covers, but his technical brilliance was just as crucial. This guy ended up holding 19 patents related to gas regulation technology! His 1958 "Mistral" regulator design alone sold over 200,000 units.

Quick question please - deep dive continues below

Aqua Lund - continued…

What made Gagnan so special was his understanding of how humans and machines interact—before that was even a recognized field. His regulator design cut breathing resistance by 60% compared to earlier underwater gear. That's the difference between diving being an elite military activity and something regular folks could enjoy.

Cousteau once said: "I might have brought the ocean to people's living rooms, but Émile made it possible for people to visit the ocean themselves." Perfect summary of their partnership—the charismatic explorer and the brilliant engineer created something bigger than either could have alone.

Commercial Expansion: 1950-1970

Business started picking up steam in 1946 when they patented their invention across multiple countries. Air Liquide saw the potential and created "La Spirotechnique" as a subsidiary to make and sell the Aqua-Lung. These weren't cheap toys—a complete unit would set you back about $135 (that's roughly $1,900 in today's money).

The American market cracked open in 1948 when a U.S. Navy diver named Doug Fane tried the Aqua-Lung in France and thought, "We gotta get this stateside!" This led to a deal with U.S. Divers Company, founded by a French expat named René Bussoz. First-year American sales hit about $35,000 with 250 units sold—not too shabby for a brand new concept!

By 1950, they were cranking out around 2,000 units annually. At $120 just for the regulator, these were still mostly for military folks and professional divers, but the company was steadily growing, hitting around $300,000 in annual revenue by 1952.

Then came 1953—Cousteau's "The Silent World" documentary won at Cannes and suddenly everyone was talking about underwater exploration. This publicity bonanza boosted sales by about 40% the next year, pushing revenue past $500,000. Talk about free marketing!

U.S. Divers Company made a smart move in 1956 by acquiring the manufacturing license outright and setting up shop in California. This slashed import costs and positioned them perfectly for the growing American market. By 1958, North American sales alone had ballooned to $1.2 million yearly.

The '60s were all about diversification. Aqua-Lung expanded beyond just regulators into masks, fins, and all sorts of diving gear. By 1965, they offered over 100 different products, with regulators making up only 30% of their total revenue, which had grown to around $5 million annually. The company now employed 150 people worldwide.

The cultural impact was just as impressive as the business growth. The TV show "Sea Hunt" rode the diving wave to 30 million weekly viewers. James Bond movies featured Aqua Lung gear in their underwater sequences. Even "Flipper" got in on the action in 1964—none of those underwater scenes would have been possible without the technology Cousteau and Gagnan created.

Corporate Evolution: 1970-1990

The '70s brought big changes. In 1972, U.S. Divers Company got bought by Seafirst, Inc. for about $12 million. By this point, annual revenue had hit $8 million with a healthy 15% profit margin.

They went big in 1974, opening a massive 45,000-square-foot factory in Santa Ana, California—a $3.5 million investment that boosted production capacity by 60% and brought their workforce to around 250 people.

Recreational diving was absolutely booming by 1976. America alone had about 1.2 million active divers, and Aqua Lung grabbed roughly 25% of that market. Their North American revenue hit $15 million, and they were now selling in 45 countries across six continents. Not bad for something that started in war-torn France!

A big corporate reshuffling happened in 1979 when Air Liquide brought all the different international branches (U.S. Divers in North America, Spirotechnique in Europe) under one umbrella. This streamlined operations and created a more consistent brand, though they kept some market-specific names to maintain local connections.

The '80s were all about tech innovation. The Titan regulator launched in 1983 with new materials and designs that worked better in freezing water. R&D investment jumped to about $1.2 million yearly—5% of revenue, which shows how seriously they took innovation.

By 1985, global revenue had soared to about $35 million with 450 employees in factories across France, the United States, and Japan. Profit margins averaged 18%, reflecting their premium position in the growing diving market.

Meanwhile, Cousteau was using his fame to champion environmental causes long before it was trendy. His iconic quote—"People protect what they love"—became a rallying cry for conservationists everywhere. By making the underwater world accessible through both his invention and his films, he created an emotional connection between the public and the oceans that still drives conservation efforts today.

Global Consolidation: 1990-2010

The '90s were all about growth through acquisition. In 1992, Aqua Lung scooped up Technisub, an Italian manufacturer of masks, snorkels, and fins, for around $7 million. This smart move added approximately $12 million in annual revenue and strengthened their European presence.

In 1996, they rolled out a massive rebranding strategy, bringing most products under the Aqua Lung name worldwide. This $4 million marketing push aimed to capitalize on the Cousteau-Gagnan legacy while positioning the brand for the future. The move paid off—by 1998, brand recognition studies showed 75% of active divers globally knew the Aqua Lung name.

A huge milestone came in 1998 when their global revenue broke $100 million for the first time. They now had about 600 employees worldwide and manufacturing operations on three continents. The little wartime invention had literally become a global brand.

The early 2000s brought new challenges as recreational diving faced competition from other adventure sports. Aqua Lung responded by pouring $8 million into product development between 2000 and 2005. The gamble paid off with the launch of the Legend regulator series, which sold over 250,000 units in its first five years.

Their biggest acquisition came in 2004 when they purchased Apeks Marine Equipment, a British manufacturer of high-performance regulators, for about $18 million. This move strengthened their position in the technical diving segment and added roughly $15 million in annual revenue.

By 2007, annual global revenue had climbed to approximately $150 million, with operations in 50 countries and a workforce of 1,000 employees. They were manufacturing around 100,000 regulators annually across their various brands and facilities.

When Cousteau passed away in 1997 at age 87, French President Jacques Chirac called him "an enchanter of the real world." His funeral was attended by heads of state, and his death made headlines globally. Even two decades later, a 2016 market study found that Cousteau still had 88% name recognition among Americans—higher than many contemporary celebrities!

Recent History: 2010-Present

The acquisition spree continued in 2011 when Aqua Lung bought Whites Manufacturing, a Canadian drysuit maker, for around $12 million. This smart move expanded their cold-water diving lineup and added about $10 million in annual revenue.

A major turning point came in 2014 when Air Liquide decided to focus on their core industrial gas business and sold Aqua Lung to Montagu Private Equity for approximately $230 million. At the time of the sale, Aqua Lung's annual revenue was estimated at $200 million, with EBITDA of roughly $25 million.

The new owners wasted no time accelerating the acquisition strategy. In 2016, they snapped up Pelagic Pressure Systems, makers of dive computers, for about $24 million. This significantly boosted their tech portfolio in the rapidly growing dive computer segment, which represented a $100 million global market.

Their biggest acquisition yet came in 2018 with the purchase of Avon Underwater Systems, which specializes in military and professional diving equipment, for approximately $45 million. This strategic move strengthened their position in defense and public safety sectors, adding about $30 million in annual revenue and contracts with military agencies in 12 countries.

By 2020, Aqua Lung's global revenue had grown to approximately $245 million, with a workforce of 1,200 employees across manufacturing facilities in five countries. Their product catalog had expanded to over 5,000 items across multiple brands serving different market segments.

In 2021, Montagu Private Equity sold Aqua Lung to Gyrus Capital, a Swiss private investment firm, in a deal valued at around $350 million. The new owners announced plans to invest in sustainability initiatives and digital transformation while honoring the legacy of innovation established by Cousteau and Gagnan. The company has since been bought by Barings, and as of today, there are talks of Head (owner of Mares) purchasing Aqua Lung. Watch this space.

As of 2024, Aqua Lung remains the undisputed market leader in recreational scuba equipment with roughly 28% global market share. Annual revenue is reported to be approximately $280 million, with operations in over 60 countries and distribution through about 3,500 dive centers worldwide. They manufacture an estimated 120,000 regulators annually, along with countless other diving products.

Innovation Legacy

From its scrappy wartime beginnings to its current status as a global diving powerhouse, Aqua Lung's journey spans nearly eight decades of continuous innovation. What started as a single product bringing in about $20,000 annually has grown into a multinational enterprise with nearly $300 million in yearly sales.

The impact goes far beyond business success. Within just a decade of the Aqua Lung's development, around 10,000 people had taken up recreational diving. By 1980, that number had exploded to over 3 million certified divers globally. Today, approximately 6 million active divers worldwide use equipment descended from their original design.

Think about it—these two guys, working in occupied France during humanity's darkest hour, created something that fundamentally changed how humans interact with 71% of our planet's surface. Their invention didn't just create a company—it birthed an entire industry, transformed our relationship with the ocean, and sparked a global environmental movement.

The company that made it possible for humans to breathe underwater continues to push the boundaries of what's possible beneath the surface, keeping alive the spirit of innovation that Jacques-Yves Cousteau and Émile Gagnan sparked back in 1943. Not too shabby for a wartime collaboration between a curious naval officer and a clever engineer!