flooring

Sterling Closes Fifth Artisan Design Add-on

by

Artisan Design Group, a portfolio company of The Sterling Group, has acquired Dixie Carpet Installations.

Dixie is a provider of flooring installation and replacement (relay) services to existing and new-construction multi-family properties across Texas including the metropolitan areas of Houston, Austin, Dallas, San Antonio and Corpus Christi.

The company’s products include commercial-grade carpets, vinyl flooring and vinyl tile. Dixie is headquartered near Houston in Missouri City, TX.

Artisan Design Group (ADG) is a dealer of flooring products and services and provides design, procurement, and installation of flooring and complementary products to homebuilders and multi-family developers. The company has more than 70 distribution, design and service facilities and its installation services are provided through over 1,300 independent contractors across 17 states. ADG is led by co-CEOs Larry Barr and Wayne Joseph and is headquartered near Dallas in Southlake, TX.

“Artisan Design Group is excited to partner with Dixie Carpet Installations,” said Mr. Barr. “We are confident that the Dixie team can build on its strong legacy of excellence and continue to grow beyond its current footprint. Dixie significantly expands our relay capabilities, allowing us to better serve our multi-family customers.”

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 acquisition of Dixie represents ADG’s fifth acquisition under Sterling’s ownership. The four earlier transactions were the June 2019 buy of Heritage Carpet & Tile, a Boynton Beach, FL-based provider of design center and installation services for flooring and complementary products including shower enclosures, mirrors and window treatments; 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; and the May 2019 buys of Lake Forest, CA-based 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. ADG has now completed thirteen total acquisitions since its founding in 2016 and the company continues to seek local and regional sellers of flooring products and services.

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. Since its founding in 1982, The Sterling Group has sponsored the buyout of 55 platform companies and numerous add-on acquisitions with a total transaction value of over $10 billion. The firm is headquartered in Houston (www.sterling-group.com).

© 2019 Private Equity Professional | October 11, 2019

Corridor Capital Forms New Flooring Platform, Makes First Buy

by

Corridor Capital has formed a new platform company, Consolidated Flooring, to acquire SCI Floor Covering (SCI). Corridor Capital intends to use Consolidated Flooring to build a platform for the regional consolidation of the highly fragmented flooring market in the Midwest. SCI’s owners and management team participated with Corridor on this transaction.

SCI Floor Covering is a distributor and installer of floor covering products for the repair, maintenance and restoration of commercial, healthcare, multi-family and insured residential properties located in Michigan. The company was founded in 1980 and is headquartered near Detroit in Southfield, MI (www.scifloorcovering.com).

“In its market, SCI offers unparalleled product quality, professionalism, customer service and commitment to the growth and development of all its stakeholders,” said Craig Enenstein, CEO of Corridor. “We are very excited to partner with its management to accelerate the growth of the business and bring its superior product and service offering to an even broader market.”

Corridor Capital makes control investments of $3 million to $12 million in mid-market companies with EBITDAs of $2 million to $5 million. Sectors of interest include specialty manufacturing, business services, and environmental services. Corridor focuses on complex situations, particularly those requiring growth support or operational or financial engagement. Corridor’s investor base includes approximately 150 executives across an array of industries and disciplines that the firm uses as an active resource for its portfolio companies and their teams. The firm is based in Los Angeles (www.corridorcap.com).

“SCI’s long-term success and growth has been driven by our commitment to attracting and developing highly talented team members, delivering consistently superior products and services to our diverse customer base, and offering manufacturers a dependable, professional distribution partner in the Michigan market. We knew that in order to expand our presence throughout the Midwest and meet the evolving needs of all of these critical stakeholders, the company would need a partner who shared our values and dedication to building a best in class leader in the industry,” said David Elberson, President of SCI. “Corridor has a demonstrated commitment to investing in and supporting small market leaders like SCI in their pursuit of growth and institutional excellence. In partnership with Corridor, we expect to invest in the people, product offering and infrastructure necessary to further enhance our ability to serve existing customers and rapidly reach new customers in Michigan and throughout the Midwest.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-5-13

KKR Acquires Tandus Flooring

by

Tarkett Group, a manufacturer of flooring and sports surfaces and a portfolio company of KKR, has acquired Tandus Flooring, a US-based floorcovering designer and manufacturer. Tarkett Group is owned by the Deconinck family (50 percent) and private equity funds affiliated with KKR (50 percent).

Tandus is a manufacturer of modular carpet and higher-end broadloom and woven products. The company serves architects, designers, end-users and service providers in commercial markets in North America and Asia. The company has five production sites in the USA and Canada and one site in China to serve the Asian markets. Annual revenues in the most recent fiscal year were $340 million. The company has 1400 employees and is based in Dalton, GA (www.tandus.com).

Tarkett Group is a provider of flooring and sports surfaces. Some 9200 employees serve Tarkett’s customers in 100 countries and in 32 production sites. The company had revenues of EUR 2.1 billion in 2011. The acquisition of Tandus will allow Tarkett to expand into the commercial carpet business in North America and Asia Pacific. Tarkett is based in Nanterre, France (www.tarkett.com).

“This acquisition is aligned with our mission to enhance our customers’ return on investment and quality of life, now offering complementary solutions in both hard and soft surfaces,” said Michel Giannuzzi, Tarkett Group CEO. “Thanks to this strategic move, we will reinforce our position as a global leading flooring provider, extending our activities in the commercial carpet market in North America while further developing our footprint in the fast growing Asian markets. Leveraging the combined strength of Tandus and Tarkett, we will continue to grow faster than the market.”

Tandus has shown strong and profitable performance, continuously increasing its market share during the past five years. Tarkett and Tandus will continue to operate as separate entities within Tarkett’s North American division, maintaining current manufacturing, business operations and routes to market. Tandus’ President, Glen Hussmann, will continue to manage the business.

“We’re pleased and excited to be part of the Tarkett family,” said Mr. Hussmann. “Tarkett is a true global company with sizeable exposure in high growth developing countries. This can provide Tandus a solid base for international expansion. We and Tarkett share an aligned vision of the future and have common views on innovation and how to serve the customer. We believe this will create benefits for all of our customers.”

KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $62 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).

 © 2012 PEPD • Private Equity’s Leading News Magazine • 9-27-12