Denver Investment Firm Acquires CA Based Interior

Denver, CO & Carlsbad, CA, Apr. 5--KRG Capital Partners, the largest buyout firm headquartered in Denver, has made its first acquisition in outsourced services for the homebuilders industry. KRG has acquired Interior Specialists Inc., one of the leading providers of outsourced interior design and installation services for homebuilders in the Southwestern U.S. ISI is the 17th portfolio company for KRG and will serve as the platform for a consolidation in this outsourced services industry. Additional financing for the transaction was provided by American Capital, Madison Capital Funding, LLC, and Harris Bank. ISI is one of the five largest companies in the $13 billion interior design services industry. "We are extremely impressed with ISI's market leading position and the strong relationships management has established with homebuilders," said Chuck Hamilton, Managing Director of KRG. "Our partnership with ISI is consistent with our strategy of investing in high-quality companies with 'customer-focused' growth strategies." As is typical with a number of KRG's companies, the management team of ISI invested alongside KRG. Headquartered in Carlsbad, CA, ISI markets and installs a variety of interior products for homebuilders through 16 design centers strategically located in areas of major new home development. "Partnering with KRG Capital brings additional expertise and resources to ISI," said Kenneth Treaster, CEO of Interior Specialists, Inc. "We look forward to working with them in expanding our capabilities and services in both existing and new markets." The company currently operates in the following local housing markets: San Diego, Los Angeles, Ventura County, Orange County, Riverside, and San Bernardino in Southern California; Phoenix and Tucson in Arizona; and Las Vegas in Nevada. ISI targets homebuilders that construct large developments of "move-up" homes that typically sell for between $250,000 and $700,000, and the company enjoys longstanding relationships with homebuilders who specialize in these developments. The company's existing regional markets have experienced a 20% higher growth in population over the last five years compared to the national average as well as superior growth in employment. ISI's experienced management team, leading position in its markets and the broader industry, proprietary software system and superior business processes equals a platform positioned for future growth, organically and through acquisition. Adding new interior design products and services, as well as continued expansion of the company's customer base will drive ISI's organic growth. The company has also proven its ability to successfully execute both "Greenfield" initiatives and acquisitions, and management has identified and prioritized a number of additional targets for ISI.

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