Floor & Decor Acquires Spartan Surfaces
Atlanta, GA, May 14, 2021-Floor & Decor has entered into a definitive agreement to acquire 100% of Spartan Surfaces, an end-to-end commercial flooring distribution company headquartered in Bel Air, Maryland, for consideration of up to $90 million.
A portion of the consideration will be paid through 2024 based on the achievement of predefined fiscal performance goals. The acquisition will be financed with cash-on-hand and $5 million of Floor & Decor common stock. Spartan Surfaces will operate as a subsidiary of Floor & Decor Holdings and will continue to be led by the Spartan Surfaces senior management team. The transaction is expected to close in the second quarter of fiscal 2021.
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 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."
Founded in 2000, Atlanta-based Floor & Decor is a specialty retailer of hard-surface flooring, operating 140 warehouse stores in 32 states as of April 1.
Read more about Floor & Decor's acquisiton of Spartan Surfaces here.