Floor & Decor Holdings acquires Spartan Surfaces
Snapshot
Floor & Decor Holdings acquired Spartan Surfaces for Up to $90 million (announced); $77.7 million total purchase consideration at acquisition-date fair value per FY2023 10-K — $63.6 million cash net of cash acquired, $9.1 million contingent consideration, and $5.0 million of common stock, plus potential earn-out of up to $18.0 million through fiscal 2024 in June 2021. The transaction was structured as combination — cash plus $5 million of Class A common stock, with up to $18 million performance-based earn-out. Spartan Surfaces is a Bel Air, Maryland, United States-based Commercial hard-surface flooring distribution business.
- Acquirer
- Floor & Decor Holdings
- Target
- Spartan Surfaces
- Value
- Up to $90 million (announced); $77.7 million total purchase consideration at acquisition-date fair value per FY2023 10-K — $63.6 million cash net of cash acquired, $9.1 million contingent consideration, and $5.0 million of common stock, plus potential earn-out of up to $18.0 million through fiscal 2024
- Date
- June 2021
- Type
- full acquisition
- Status
- ready
The deal at a glance
About this deal
Floor & Decor Holdings acquired Spartan Surfaces for Up to $90 million (announced); $77.7 million total purchase consideration at acquisition-date fair value per FY2023 10-K — $63.6 million cash net of cash acquired, $9.1 million contingent consideration, and $5.0 million of common stock, plus potential earn-out of up to $18.0 million through fiscal 2024, a transaction completed in June 2021, structured as combination — cash plus $5 million of Class A common stock, with up to $18 million performance-based earn-out.
Spartan Surfaces operates in Commercial hard-surface flooring distribution, is based in Bel Air, Maryland, United States. Spartan Surfaces is an end-to-end commercial flooring specifying distribution company headquartered in Bel Air, Maryland, serving the architectural and design community through a scalable specifying and consultative selling model. Floor & Decor acquired 100% of the issued and outstanding equity interests; Spartan operates as a subsidiary and continued to be led by its existing senior management team.
Floor & Decor said it had seen strong growth in its commercial business and viewed the addressable commercial market as large at an estimated $13 billion, positioning Spartan Surfaces as the strategic partner to incrementally accelerate its commercial flooring growth through Spartan's scalable specifying and consultative selling business model serving the architectural and design community.
Gave Floor & Decor an established commercial-flooring channel into architects, designers, and contractors, accelerating expansion into a fragmented commercial market estimated at roughly $13 billion. Combining Floor & Decor's merchandise sourcing and supply-chain infrastructure with Spartan's specifying and consultative commercial sales model; expected to be accretive but not material to fiscal 2021 diluted EPS excluding transaction and integration costs. Operates as a subsidiary of Floor & Decor Holdings, Inc., led by the Spartan Surfaces senior management team
No advisory firms have been disclosed for this transaction.