Atlanta, Georgia, November 29, 2010 - Floor and Decor Outlets of America, Inc., a leading specialty retailer of hard surface flooring and accessories, announced today that it has been acquired by affiliates of Ares Management LLC and Freeman Spogli & Co. from an investor group that includes Najeti Ventures LLC, Saugatuck Capital Company and TWJ Capital LLC.
Founded in 2000, Floor and Decor is a category killer in the hard surface flooring market, offering the broadest selection of ceramic, stone, wood and laminate flooring available to both individual consumers as well as contractors. In addition, Floor and Decor also sells a full array of tools and related accessories necessary to complete any hard flooring project. Headquartered in Atlanta, Floor and Decor currently operates 25 stores in 15 U.S. metropolitan markets as well as its online store at www.flooranddecoroutlets.com.
Floor and Decor offers the best possible price on everything needed to complete a hard surface flooring project under one roof, a compelling value proposition to both do-it-yourself and contractor customers. As a result of this acquisition, Floor and Decor expects to accelerate its growth plans by expanding the number of stores and markets in which it will operate.
"We are delighted to partner with Ares and Freeman Spogli, whose capital base, network of relationships and expertise in the retail and consumer industries will be an invaluable resource as we embark on a significant expansion of our geographic footprint," said Vincent West, Chief Executive Officer of Floor and Decor.
"Floor and Decor provides consumers with the lowest prices for high-quality flooring materials and accessories, the broadest selection of hard surface flooring-with approximately five times the selection of a typical home improvement retailer, and the largest in-stock quantities of project-ready products anywhere," said David Kaplan, Senior Partner at Ares Management. "We are excited to work with Freeman Spogli to support the company's expansion across the country so that all customers can take advantage of its unparalleled offering."
"Floor and Decor enables homeowners to remodel at a substantial savings relative to other retail outlets," said John Roth, General Partner at Freeman Spogli. "In light of the current economic environment, we are convinced that consumers are particularly attracted to both competitive pricing as well as the shopping efficiency of having everything needed for a flooring project in one place."
About Floor and Decor Outlets of America, Inc.
Floor and Decor Outlets of America, Inc. is a leading specialty retailer in the hard surface flooring market, offering the broadest selection of ceramic, stone, wood and laminate flooring available in the industry, as well as tools, decorative and related accessories. Floor and Decor currently operates 25 stores in 15 metropolitan markets across the U.S. Stores typically range in size from 60,000 to 80,000 square feet, and each store stocks approximately 2,500 SKUs. Floor and Decor is focused on the residential remodeling segment, and its customers are primarily do-it-yourself consumers and professional contractors. The Company was founded in 2000 and is headquartered in Atlanta, GA. For additional information, visit www.flooranddecoroutlets.com.
About Ares Management LLC
Ares Management is a global alternative asset manager and SEC registered investment adviser with approximately $37 billion of committed capital under management and approximately 340 employees as of September 30, 2010. Ares invests in all levels of companies' capital structures - from senior debt to common equity. The firm's investment activities are managed by dedicated teams in its Private Equity, Private Debt and Capital Markets investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value.
The Ares Private Equity Group pursues majority or shared-control investments, principally in leading middle market companies. The group seeks strong business franchises and situations where its capital serves as a catalyst for growth. Its senior partners average more than 20 years of experience in investing in, controlling, advising, and restructuring companies. The firm is headquartered in Los Angeles, CA with offices across the U.S. and Europe. For additional information, visit www.aresmgmt.com.
About Freeman Spogli & Co.
Freeman Spogli & Co. is a private equity firm dedicated exclusively to investing in and partnering with management in consumer-related companies in the retailing, direct marketing and distribution industries in the United States. Since its founding in 1983, Freeman Spogli has invested over $2.8 billion in 45 portfolio companies with aggregate transaction value of $17 billion, and is currently making investments from FS Equity Partners VI, L.P. Freeman Spogli has offices in Los Angeles and New York. For additional information, visit www.freemanspogli.com.