The Home Depot has agreed to acquire International Designs Group (IDG), a distributor and retailer of stone and porcelain tile and a portfolio company of Mill Point Capital.
Mill Point formed IDG in April 2022 to acquire Cancos Tile & Stone, a Farmingville, New York-based distributor of high-end porcelain, stone, ceramic, glass, and mosaic tile to the residential and commercial repair and remodeling markets. At the time of its acquisition, Cancos operated 12 facilities and showrooms across Long Island, Manhattan and New Jersey which included over 500,000 square feet of warehouse capacity.
In July 2022, Mill Point added on to IDG with the acquisition of Construction Resources Holdings (CRH), a Decatur, Georgia-based distributor of quartz, natural stone, porcelain and tile surfaces, architectural specialty products, and appliances from Monomoy Capital. Monomoy had formed CRH in December 2015 as a platform to acquire two companies – Constructions Resources and Builder Specialties – and in 2019 it added on to CRH with the buys of two Florida-based companies, United Materials in June and Florida-based Any Old Stone in November.
In August 2023, IDG added on again with the buy of Trajus Surfaces, a New Jersey-based distributor of quartz and natural stone products sold under the brands European Granite & Marble and Marva Marble.
“Mill Point has been a tremendous partner to IDG. With their guidance and support, we have successfully completed many initiatives that have grown the business meaningfully,” said Mitch Hires, the CEO of IDG.
Today, IDG is headquartered near Atlanta in Decatur, Georgia, and operates 52 locations across the southeast and northeast United States as follows: Construction Resources (21), Cancos Tile & Stone (13), United Materials (8), Marva Marble (5), and European Granite & Marble (5).
“In a short period of time, our partnership with IDG’s outstanding management team and dedicated employees has transformed the company into a highly sought-after strategic platform,” said Michael Duran, the founder and a managing partner of Mill Point. “We are delighted that IDG has joined The Home Depot and look forward to following its continued success.”
Home Depot (NYSE: HD) is the world’s largest home improvement specialty retailer. At the end of the third quarter of fiscal year 2023, the company operated a total of 2,333 retail stores in all 50 states with more than 470,000 employees.
According to Home Depot, the acquisition combines IDG’s expertise in complex, cross-category professional projects with Home Depot’s scale and distribution expertise.
“We’re thrilled to join The Home Depot team, because their customer- and associate-focused culture aligns so well with Construction Resources’ commitment to excellence in serving our customers,” added Mr. Hires. “The Home Depot’s scale, operational expertise and product innovation is unmatched in our industry, and I’m confident the combination of our capabilities will bring tremendous value to the Pros and homeowners who rely on us every day.”
“Mitch and the entire IDG team have built a tremendous platform, which will continue to flourish within The Home Depot’s organization. We are honored to have worked closely with them to achieve several milestones, and they are well-positioned moving into their next phase of growth,” said Rick Bennet, a Mill Point executive partner.
New York City-based Mill Point makes control-oriented investments in North America-based lower middle-market industrial, business services, and IT services companies. Mill Point closed its second fund, Mill Point Capital Partners II LP, at its hard cap of $886 million in February 2021. The firm’s inaugural institutional fund, Mill Point Capital Partners LP, closed at its hard cap of $450 million in May 2018.
The acquisition of IDG by Home Depot is expected to close by the end of 2023.
© 2023 Private Equity Professional | November 29, 2023
