Sullivan's F9 Investments Makes Another Bid for LL Flooring

Richmond, VA, November 14, 2023-"LL Flooring Holdings Inc., formerly known as Lumber Liquidators, received Tuesday a buyout bid from private equity firm F9 Investments LLC that values the wood floors maker at about $92.6 million,” reports MarketWatch.

“F9, which owns about 8.8% of LL Flooring’s shares outstanding, said it would pay $3 in cash for each LL share outstanding, which represents a 6.4% premium to Monday’s closing price of $2.82. The bid’s valuation of the company is a far cry from the company’s market cap of $3.3 billion at the stock’s peak in November 2013. LL’s stock fell 0.7% in premarket trading Tuesday, to trade within range of its Oct. 5 record closing low of $2.74. ‘We believe our offer represents a compelling, immediate, and certain cash value for LL’s shareholders, in light of the Company’s deteriorating financial condition and declining stock price, which in our view reflects the market’s lack of confidence in the current Board’s strategy,’ said F9 owner Thomas Sullivan said. ‘LL Flooring’s most recent, dismal third quarter earnings performance further reflects the Board and management’s lack of urgency, credible plan, execution ability, or capacity to control costs despite numerous pledges to do so.’ LL’s stock has plunged 49.8% year to date through Monday, while the S&P 500 SPX, 1.89% has advanced 14.9%.”

Sullivan founded LL Flooring as Lumber Liquidators.

Sullivan acquired 9.4% of LL Flooring stock in May 2023 and made an offer to the business shortly thereafter. He rescinded his first buyout offer in August, after the LL Flooring board rejected in it June. In October, Live Ventures also made an offer to buy the company for a total of $180 million. Live Ventures’ portfolio of flooring companies includes Marquis Industries, acquired in 2015 for $30 million; Flooring Liquidators, acquired in January 2023 for $84 million; and the brands formerly owned by QEP--Naturally Aged Flooring, Harris, Kraus and Heritage Wood--acquired in September 2023 for $10 million.