Los Angeles, Calif.—Platinum Equity acquired Paramount Global Surfaces (PGS), a developer, importer and distributor of proprietary porcelain tile and other hard surface floor coverings used primarily in remodel and replacement solutions by both residential and commercial end users. Financial terms have not been disclosed.
Headquartered in Miami, PGS goes to market through two distinct floor covering brands: Happy Floors, which serves a diverse base of more than 6,000 independent dealer customers throughout the United States; and Ceramic Technics, which serves approximately 1,800 architecture and design firms and 4,000 contractors/installers and corporate customers across multiple commercial and multifamily end-user segments.
According to Platinum Equity, PGS serves some of the fastest growing segments of the floor covering market as consumer preferences continue to shift toward tile and luxury vinyl tile products. Larger macro trends are also having a positive impact on the company, Platinum Equity added.
“PGS serves a critical link in the value chain connecting high-quality tile manufacturers with thousands of end customers in the US residential and commercial markets,” said Jacob Kotzubei, Platinum Equity partner. “COVID-19 and demographic trends are also driving a shift in consumer lifestyle that is stimulating increased new home construction and renovation activity, and we anticipate the impact of these tailwinds will be felt for years to come.”
Platinum Equity said it also recently acquired Cabinetworks, said to be the largest independently owned manufacturer and distributor of kitchen and bath cabinets in the United States. The firm added it previously invested in other companies including Interior Logic Group, provider of interior design and finish solutions for the homebuilding industry; PrimeSource, a national distributor of specialty building materials including fasteners serving the new construction and remodeling markets; and Nilco, a wholesale distributor of specialty building materials and industrial products.
“We have a lot of experience investing in building products companies and know the industry well,” Kotzubei said. “We will put our M&A and operational resources to work in pursuit of new avenues to diversify PGS by product type, geography, channel and customer segment. The company operates in a highly fragmented market with significant opportunities to grow, and PGS is an outstanding platform for additional complementary and transformative acquisitions.”
According to Platinum Equity, O’Melveny & Myers and Alston & Bird served as Platinum Equity’s legal counsel on the transaction; Robert W. Baird & Co. served as financial advisor to Platinum Equity on the transaction; Blackstone Credit provided financing for the transaction; Moelis & Company LLC served as exclusive financial advisor; and Calfee, Halter & Griswold provided legal counsel to PGS.