Specialty flooring retailer Floor & Decor reported that it is acquiring Spartan Surfaces, a distributor of commercial flooring.
The deal calls for Floor & Decor to pay up to $90 million for Spartan Surfaces with the acquisition financed through cash and $5 million in Floor & Decor stock. Floor & Decor said that it expects the acquisition to be finalized in the second quarter.
Spartan Surfaces, based in Bel Air, Md., will operate as a subsidiary of Floor & Decor with its senior management team remaining in place.
“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,” said Tom Taylor, CEO of Floor & Decor.
Taylor noted that the commercial market is an estimated $13 billion and the addition of Spartan Surfaces will allow Floor & Decor to accelerate its commercial flooring growth.
Based in Atlanta, Floor & Decor operates 140 warehouse stores in 32 states. The retailer offers a broad assortment of tile, wood, laminate, vinyl, and natural stone flooring along with decorative and installation accessories and adjacent categories. The stores also offer free design services and a pro sales team.