Keystone Capital Acquires Scott Group Custom Carpets
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Keystone Capital Acquires Scott Group Custom Carpets

scottgroupKeystone Capital has made an investment in Scott Group Custom Carpets, a manufacturer of luxury carpets and rugs.

Scott Group designs and manufactures hand-made and machine-made custom wool (and silk/cashmere blends) carpets and rugs for a variety of high-end, luxury applications. The company is a supplier to the business aviation, high-end residential and commercial (including luxury retail), and yacht markets both in the US and abroad. Scott Group produces 100% American made carpets at its headquarters in Grand Rapids, MI and has a network of showrooms throughout the US. The company was founded in 1969 (www.scott-group.com).

Scott Group’s executive management team, consisting of Michael Ruggeri (President), Richard Ruggeri (Vice President) and Timothy Hill (Vice President, Operations and Finance), will remain significant shareholders and will continue to lead the day to day operations of the company.

gwilliam nf“We are extremely excited to be a part of the future of Scott Group and about the partnership we have formed with the management team,” said Scott Gwilliam, Managing Director of Keystone Capital. “Scott Group’s niche market position, impressive business model and strong management team, along with its desire to partner with a patient, long-term oriented firm like Keystone made this a perfect fit for both sides.”

With the acquisition of Scott Group, Keystone Capital will be looking for opportunities to acquire complementary businesses. Areas of interest include suppliers of luxury fabrics and interior products serving similar end markets (i.e. business jets and interior design).

Keystone Capital invests in middle market companies with EBITDAs of $3 million to $15 million that are market leaders in niche, mature industries. Sectors of interest include niche manufacturing, industrial technology, food products and packaging, healthcare products and services, business and professional services. Keystone Capital manages in excess of $200 million in investment capital and is based in Chicago (www.keystonecapital.com).

“We are energized about the partnership between Keystone and Scott Group,” said Mike Ruggeri, CEO of Scott Group. “This partnership will allow our team to continue running the business, provides access to greater resource levels and will accelerate our strategic growth plan for Scott Group.”

Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis.

© 2014 PEPD • Private Equity’s Leading News Magazine • 2-4-14

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