carpeting

Norwest Sells Stanton Carpet

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Norwest Equity Partners (NEP) has sold Stanton Carpet Corporation to Quad-C Management. This transaction closed on November 21, 2016.

Stanton Carpet is a value-added distributor of carpet and custom rugs and runners under the Stanton, Antrim, Royal Dutch, Atelier, Rosecore and Crescent brands. The company sells its products through approximately 4,000 retail partners, including independent retail floor showrooms, trade showrooms and home furnishing retailers. Stanton has 100 employees and is based on Long Island in Syosset, NY with a distribution center in Calhoun, GA (www.stantoncarpet.com).

During NEP’s ownership, the company acquired Crescent Carpet (July 2016), and expanded the company’s sales force, international supply partners, and showroom and retail partners. “NEP has been a true partner to the Stanton team, sharing their family business and distribution industry experience, while also helping to align our company with the right resources to help us grow and outperform expectations. We have thoroughly appreciated NEP’s guidance and partnership over the last four years,” said Sy Cohen, Stanton Founder and Chairman. NEP acquired Stanton Carpet in 2012 from Mr. Cohen, who founded the company in 1980.

NEP makes equity investments of $30 million to $250 million in companies that have more than $10 million in EBITDA. Sectors of interest include agriculture, business services, consumer, distribution, diversified industrials, energy, and healthcare. In April 2015, NEP closed Norwest Equity Partners X, LP, a $1.6 billion fund and Norwest Mezzanine Partners IV, LP, an $800 million fund formed by NEP’s affiliated mezzanine investment firm, Norwest Mezzanine Partners. Norwest Equity Partners is headquartered in Minneapolis (www.nep.com).

Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. The firm was founded in 1989 and is headquartered in Charlottesville (www.quadcmanagement.com).

BB&T Capital Markets served as financial advisor to Norwest Equity Partners. Winston & Strawn served as legal advisor to Stanton.

© 2016 Private Equity Professional

November 30, 2016

H.I.G. Adds-On to Lexmark Carpet Mills

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H.I.G. Capital’s portfolio company Lexmark Carpet Mills has completed the acquisition of Northwest Carpet.

Northwest Carpets is a manufacturer of solution-dyed, broadloom carpet focused exclusively on the hospitality end-market.  The company was founded in 1977 by Randy Coker and his father, Edward Coker and is headquartered south of Chattanooga, TN in Dalton, GA (www.northwestcarpets.net).

Lexmark, acquired by H.I.G. Capital in September 2013, is a manufacturer of broadloom carpet for hospitality, residential and niche commercial applications.  Lexmark was founded in 1993 and is based in Dalton, GA (www.lexmarkcarpet.com).

It is no co-incidence that both companies are based in Dalton, GA as the city is often referred to as the “Carpet Capital of the World,” and is home to more than 150 carpet plants.  More than 90% of the carpet produced in the world today is made within a 65-mile radius of the city.

According to Todd White, CEO of Lexmark, the acquisition of Northwest makes a lot of sense. “Northwest represents an attractive acquisition as we continue to grow our business. There are significant synergies and opportunities to enhance our design and service capabilities for our customers.”

“Northwest and Lexmark are highly complementary businesses.  Northwest has a long track record of producing high quality, design-focused broadloom carpet targeted exclusively at the hospitality market.  We are pleased to support the team in their growth and continued success,” said Ricky Stokes, Managing Director of H.I.G. Capital.

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion.  H.I.G. has more than $17 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15

Keystone Capital Adds-on Hokanson Carpets

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Scott Group Custom Carpets, a portfolio company of Keystone Capital acquired in February 2014, has acquired Hokanson Carpets.

Hokanson Carpets is a provider of high end residential carpeting. The company has been involved in some of the most important rug and carpet projects in North America, Europe, the Middle East, Australia and Asia including the restoration of the Russian Royal Palaces in St. Petersburg, the office of Canada’s Speaker of the House and the Burj Khalifa – the world’s tallest building – in Dubai.  Hokanson Carpets operates showrooms in New York, Boston, Chicago, Houston (headquarters), Dallas and Los Angeles and additional US and international showrooms are planned by the company. Hokanson Carpets was founded by Larry Hokanson in 1987 (www.hokansoncarpet.com).

Scott Group Custom Carpets is a designer and producer of custom luxury carpets and rugs to the architectural design trade. The company’s carpets can be found in the finest aircraft, luxury retail stores, corporate offices, yachts and residences in the world, including the State Dining Room and Oval Office in the White House. Scott Group owns and operates a manufacturing facility in Grand Rapids, MI (headquarters) with 14 artists and a total staff of 200 employees. The company was founded in 1969 (www.scottgroup.com).

“Together, Scott Group and Hokanson comprise the largest US provider of luxury handmade rugs and carpets,” said Michael Ruggeri, president and CEO of Scott Group. “We have long been admirers of Larry Hokanson and his company and believe that by coming together, we can lead the industry by providing an incredibly broad array of products for the interior design and architectural community.”

The acquisition of Hokanson is consistent with Keystone Capital’s strategy to deliver a broader set of products to Scott Group’s current customer base and to expand its markets.  Keystone Capital will continue to evaluate opportunities to add to Scott Group’s portfolio of brands through acquisitions or joint ventures. “Scott Group is poised to continue expanding and will aggressively pursue other future opportunities that enhance value for our world-class client base,” said Mr. Ruggeri.

The combination of Scott Group and Hokanson will not only strengthen the US showroom presence of both companies in Los Angeles, New York, Chicago and Dallas, but expand it by establishing a presence in Houston and Boston. In addition, the combined company will be able to leverage a broader array of products through its network of showrooms and interior designer relationships throughout the world.

2014 PEPD • Private Equity’s Leading News Magazine • 10-26-14

Keystone Capital Acquires Scott Group Custom Carpets

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Keystone 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.

“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

H.I.G. Capital Invests in Lexmark Carpet Mills

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H.I.G. Capital has made an investment in Lexmark Carpet Mills, a manufacturer of broadloom carpet for hospitality, residential and niche commercial applications.

“We are very excited about this next stage for Lexmark. Our partnership with H.I.G. will provide us with financial and operating resources that will enable us to further capitalize on our significant growth potential at an exciting time for our industry,” said Todd White, Founder and CEO of Lexmark.

Lexmark is a specialty carpet mill focused on supplying high-styled nylon and polyester carpet to customers in the hospitality, residential and niche commercial end markets. Lexmark was founded in 1993 and is based in Dalton, GA (www.lexmarkcarpet.com).

H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. Capital has more than $13 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Paris, and Rio de Janeiro (www.higcapital.com).

“Todd White and his team have established Lexmark as a leading manufacturer of high-styled broadloom carpet for hospitality, residential and niche commercial customers,” said Ricky Stokes, a Managing Director of H.I.G. “We look forward to working with the team to build upon their successful track record. We believe there are numerous opportunities, both in hospitality as well as new markets and applications, where Lexmark’s quality products and focus on customer service will enable continued, sustainable growth.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-1-13

Dominus Capital Acquires Bentley Prince Street

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Interface, a manufacturer of modular carpet, today announced that it has completed the sale of its Bentley Prince Street division, in a transaction valued at $35 million, to Dominus Capital and Bentley Prince Street President Anthony Minite and other members of the company’s senior management team.

Bentley Prince Street manufactures and markets broadloom, carpet tile and area rugs for commercial interiors. Based in City of Industry, CA, Bentley Prince Street operates a carpet mill and is the largest commercial carpet manufacturer in California (www.bentleyprincestreet.com).

“We are excited to partner with Anthony and the rest of the management team in this investment. We look forward to supporting them as they continue to expand their industry leading product portfolio and further build-out their roster of dedicated clients around the globe. In addition to making a substantial financial commitment to Bentley, we look forward to utilizing our previous experience in the floor covering industry, as well as our network of industry executives, to assist management in achieving its growth plans,” said Ashish Rughwani, Partner at Dominus Capital.

Dominus Capital invests in middle-market companies in the US and Canada in a variety of industries with a particular focus on the business services, light manufacturing and consumer sectors. The firm is located in New York, NY (www.dominuscap.com).

Interface is the world’s largest manufacturer of modular carpet, which it markets under the Interface, FLOR, Heuga and Bentley Prince Street brands. The company is based in Atlanta, GA (www.interfaceglobal.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 8-21-12