Syosset, N.Y.—Stanton Carpet has announced it has partnered with Minneapolis-based Norwest Equity Partners (NEP), a middle market investment firm with nearly $5 billion in capital under management. NEP has made a majority investment into the company along with substantial investments from Jonathan and Sy Cohen, as well as other management team members.
As part of the deal, Stanton’s team will continue to lead and operate the business from its Syosset, N.Y.- and Calhoun, Ga.-based facilities. NEP has been investing alongside business owners and their management teams for more than 50 years, and Stanton’s affiliation with it is a strategic partnership based on long-term growth plans for the company. NEP is committed to sharing its extensive resources to support Stanton’s growth strategy.
As Jonathan Cohen, Stanton’s COO, stated, “Stanton prides itself on providing value across the board. Our ability to consistently offer premium products with rapid-order fulfillment is driven by our knowledge about customer needs, our strong supplier relationships, strategic inventory management, and highly efficient distribution capabilities. We look forward to achieving continued growth with NEP as our investment partner.”
Prior to the transaction, Jonathan and Sy Cohen had been Stanton’s owners, but “we re-invested with our new partners at an even higher level,” said Jonathan Cohen. “Prior to NEP, Stanton was partnered with Linsalata Capital Partners, who owned a majority of Stanton, with the Cohen family and management owning a minority percentage.
“The partnership with NEP is the same structure,” he explained, “[as] NEP is a majority owner, with the Cohen family making a significant investment along with other members of Stanton management.”
Todd Solow, NEP partner and Stanton board member, said, “Stanton is a great fit with NEP’s investment strategy in the distribution industry, and we believe this is an excellent time to invest in the company as it should benefit from the improving health of the housing and renovation market.
“Stanton provides tremendous value to its customers by providing excellent customer service and a differentiated sales and distribution model,” he explained. “With a proven track record of introducing new products and entering new markets, Stanton is well-positioned to grow, expand, and gain market share.”
This is not NEP’s first foray in the flooring arena, as it is a minority investor in Tandus.
Sy Cohen, Stanton’s founder and CEO, said, “As a 30-year-old family-owned business, our investment partnership with NEP marks an exciting time for Stanton.” NEP has tremendous experience with investing in family-run businesses as well as significant industry expertise and resources within the distribution sector. On behalf of the Stanton team, we look forward to working closely with NEP.”
For more information on Stanton, call 516.822.5878.