Kevin Jablon, Founder and CEO of Spartan Surfaces stated, “Floor & Decor’s extensive sourcing and distribution capabilities of innovative, trend-forward products will serve as a key selling point for our business development team and for projects that depend on reliability and near-term supply. Just as we’ve revolutionized how hard surface flooring is purchased in retail, we see multiple sources of potential value creation by collectively leveraging each company’s core strengths, and we are excited about supporting Spartan Surfaces’ accelerated growth plans.” The addressable commercial market is large at an estimated $13 billion, and we believe Spartan Surfaces is the right strategic partner to enable us to incrementally accelerate our commercial flooring growth plans through their scalable specifying and consultative selling business model that primarily serves the architectural and design community. Tom Taylor, Floor & Decor’s Chief Executive Officer, stated, “We have seen strong growth in our commercial business over the last several years by providing a simplified, reliable and lower cost solution for commercial projects that leverages our merchandise sourcing and supply chain infrastructure. The transaction is expected to close in the second quarter of fiscal 2021. and will continue to be led by the Spartan Surfaces senior management team. Spartan Surfaces will operate as a subsidiary of Floor & Decor Holdings, Inc. It is expected to be accretive but not material to Floor & Decor’s diluted earnings per share for fiscal 2021, excluding transaction and integration costs. The acquisition will be financed with cash-on-hand and $5 million of Floor & Decor common stock. A portion of the consideration will be paid through 2024 based on the achievement of predefined fiscal performance goals. Atlanta, GA, – Floor & Decor (NYSE: FND) today announced that it has entered into a definitive agreement to acquire 100% of Spartan Surfaces, a leading end-to-end commercial flooring specifying distribution company headquartered in Bel Air, Maryland for consideration of up to $90 million.
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