Platinum Equity acquires PGS

HomeNewsPlatinum Equity acquires PGS
PGS
Crash Blue colorway of the PGS brand, Happy Floors.

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.

Must Read

Mohawk Builder + Multifamily promotes Made in USA portfolio

Calhoun, Ga.—Mohawk Builder + Multifamily is aiming to build a more sustainable world with a diverse portfolio of carpet, laminated wood and resilient flooring...

Johnsonite named Top Product in Fuse Alliance Supplier Awards

Solon, Ohio—Tarkett’s Johnsonite family of rubber tile and finishing accessories was named Top Product in the Fuse Alliance Supplier Awards during the group’s annual...

WFCA launches SEAL Academy

Dalton—The World Floor Covering Association (WFCA) has launched the SEAL (Seeking Excellence As Leaders) Academy, a leadership development and certification program billed as a...

Mannington hires award-winning carpet designer

Salem, N.J.—Mannington has appointed Jeanette Himes as manager of residential carpet design. With her extensive experience in carpet design, Himes is set to bring a...

Underlayment: Padding products tout form and function

Underlayment is a crucial part of the flooring installation process. Its benefits include sound absorption, moisture protection, substrate leveling and more.  Choosing the right underlayment...

Southwind names Jim Mahaffey divisional VP

Dalton, Ga.—Jim Mahaffey has been chosen to be the divisional vice president for Southwind's Northeast region of the sales team. Mahaffey joins Southwind after...
Some text some message..
X