Floor & Decor to acquire Spartan Surfaces
Atlanta – On May 13, Floor & Décor, a multichannel specialty retailer with 140 warehouses in 32 states, entered into a definitive agreement to acquire 100% of Spartan Surfaces, a leading end-to-end commercial flooring company, for a fee of up to $ 90 million. Spartan Surfaces, headquartered in Bel Air, Md., Will operate as a subsidiary of Floor & Decor Holdings, Inc., and will be further led by Spartan Surfaces’ senior management team.
Part of the compensation will be paid up to and including 2024 based on the achievement of predefined tax performance targets. The acquisition will be funded with cash and $ 5 million of Floor & Decor common stock. It is expected to contribute to, but not materially, Floor & Decor’s diluted earnings per share for fiscal 2021, excluding transaction and integration costs. The transaction is expected to close in the second fiscal quarter of 2021.
“We have seen strong growth in our commercial activities in recent years by providing a simplified, reliable and less expensive solution for commercial projects that leverages our procurement of goods and supply chain infrastructure,” said Tom Taylor, CEO of Floor & Décor . “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 consulting sales business model that is primarily serves for architecture and design. community. “
Kevin Jablon, founder and CEO of Spartan Surfaces, added, “Floor & Decor’s extensive purchasing and distribution capabilities of innovative, trend-driven products will serve as a key selling point for our business development team and for projects that rely on reliability and on-time delivery. Looking to the future, we are delighted that Floor & Decor has the experience and resources to help us accelerate our growth plans into many untapped and highly fragmented markets in the United States, while preserving our unique culture. “
(For more information on this story, see the May 24/31 edition FCNews.)