Artisan Design Group (ADG), a portfolio company of The Sterling Group, has acquired Heritage Carpet & Tile.
Heritage is a provider of design center and installation services for flooring and complimentary products including shower enclosures, mirrors and window treatments.
The company, led by CEO Randy Smith, was founded in 1983 and is headquartered in Boynton Beach, FL with additional Florida locations in Fort Pierce, Naples and Sarasota (www.heritageflooring.com).
“We are very pleased to be teaming up with ADG. Their broad reach and experience across a variety of product categories will support us in continuing our strong growth. Furthermore, as a family business, we were also looking for a partner with the right cultural fit that will allow us to continue our focus on local customer service and execution,” said Mr. Smith.
Artisan Design Group (ADG) is a dealer of flooring products and services, providing design, procurement, and installation of flooring and other complementary products for homebuilders. The company operates 65 distribution, design and service facilities and coordinates installation through over 1,250 independent contractors across 17 states. ADG is led by co-CEOs Larry Barr and Wayne Joseph and is headquartered in Southlake, TX (www.artisandesigngroup.us).
“We are excited to welcome Heritage Carpet & Tile to Artisan Design Group. We continuously strive to enhance our capabilities to better serve our customers, and through Heritage we will expand our geographic footprint to the important Florida market. The Heritage team has built an impressive company and we are proud to be partnering with them,” said Messrs. Barr and Joseph in a released statement.
ADG was formed by Dunes Point Capital in 2016 through the combination of Floors Inc. and Malibu Floors. At that time, the combined companies had annual revenues of $120 million. Within two years and after eight add-on acquisitions, annual revenues had increased to $410 million. The Sterling Group acquired ADG from Dunes Point through its fourth fund in December 2018.
The buy of Heritage by ADG is the company’s fourth acquisition under Sterling ownership. The three earlier transactions were the February 2019 buy of Builders Wholesale Flooring, a Columbia, SC-based provider of design, procurement, and installation of flooring and other products to residential and multifamily home builders (www.builderswholesale.com); and the May 2019 buys of sister companies Vintage Design and Nu Wood Design. Vintage Design is a provider of design and installation services for flooring products in the California market and Nu Wood is a full-service manufacturer and installer of cabinetry which primarily serves Vintage Design’s single-family homebuilder customers. Both companies are based in Lake Forest, CA (www.vintagedesigninc.com).
The Sterling Group invests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $750 million. The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires. Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).
© 2019 Private Equity Professional | June 7, 2019