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Hi, I’m K. Schipper with the latest hard surface news from Radio Stone Update.
00:13
A private equity group completed its acquisition of Select Interior Concepts – SIC – in a cash for stock deal valued at approximately $375 million. Sun Capital Partners completed the transaction in late October.
The company is now known as Architectural Surfaces Group, or ASG, which was a division within SIC.
The deal was first announced in early August following several rounds of negotiations and consideration of other offers. Sun Capital paid SIC shareholders $14.50 per share in cash, or a 32 percent premium over SIC’s Aug. 6 closing price.
Marc Leder, co-CEO of Boca Raton, Fla.-based Sun Capital, says the investment plays into many of that company’s strengths, including success in the building products sector. Says Leder, “With our support, ASG will be better able to capitalize on a significant market opportunity.”
With legacy companies founded in 1992, the Austin, Texas-based ASG is a premier distributor of interior building products with leading positions in highly attractive markets. The company operates a national network of 22 distribution centers and 20 showrooms selling proprietary brand names including PentalQuartz and MetroQuartz.
ASG plays a dual role as both a value-added distributor and a direct-to-customer/designer showroom, connecting global slab suppliers with thousands of end customers in a highly fragmented localized market for both remodeling and new construction projects.
Jeremy Stone, Sun Capital managing director, says it’s an exciting time to begin working with ASG. He mentions the rapid growth in the residential and remodeling segments of the market as particularly challenging. Stone says, “The wholesale slab market in particular is expected to experience continued growth over the next few years.”
Select Interior Concepts sold off its Residential Design Services segment earlier this year to a subsidiary of the Blackstone investment firm for $215 million. SIC’s stock was delisted from the NASDAQ in October.
02:40
When the fifth Coverings Connected online event convenes Nov. 17, Natural Stone Institute President Michael Picco will present “Achieving Green Building Goals with Natural Stone” assisted by Sarah Gregg, the Natural Stone Institute marketing manager.
The CEU-eligible session will include understanding the inherent attributes that make natural stone an easy option for sustainability goals, exploring best practices, how to source and specify sustainably produced natural stone and identifying credits available through common green-building programs that can involve natural stone. The presentation is scheduled from 11 a.m. to noon Eastern Standard Time.
Other presentations on Nov. 17 include “Tile Installations and Critical Lighting,” and “Supply Chain Disruption: Making the Inflexible, Flexible.”
Jennifer Hoff, president of Taffy Event Strategies LLC, the show management company for Coverings, says Coverings Connected in November will present never-before-seen tile and stone content encompassing a broad spectrum of topics. Included in that will be an advanced glimpse of the trends and learning opportunities being planned for Coverings 2022, which is scheduled for next April 5-8, in Las Vegas.
For more information about the Nov. 17 edition of Coverings Connected and to register for free, visit coverings.com/connected.
04:13
The Stone Equipment and Supply Alliance, the SESA, which is working to make The International Surface Event – or TISE – into the trade show for fabricators in this country, just beefed up its offerings further. SESA executives announced last week that it’s including slab and material manufacturers and providers in its ranks.
The new category of membership for the trade group, called SESA Slab and Material Supplier, will be able to take advantage of SESA benefits, including reduced fees for exhibiting and access to preferred space in a dedicated area at next year’s StonExpo.
Mike Schlough, SESA board president, says, “Our goal is to make StonExpo the show for fabricators to see equipment, supplies and now all materials that are relevant to their businesses.” He adds that the new membership category will improve the show experience for both attendees and exhibitors.
Currently, 45 U.S. and European-based companies make up SESA, which formed this spring to communicate a unified voice regarding industry events and tradeshows. The group selected TISE as its preferred industry trade show, beginning next February with the 2022 edition in Las Vegas.
For more information or to join the alliance, contact Jon Lancto of Big Fish Consulting at 843-860-4150, or email him at jlancto@icloud.com
05:50
Portobello Group, a Brazilian producer of porcelain and ceramic tile, recently began construction of a U.S. factory in Baxter, Tenn. The facility is planned to encompass approximately 895,000 square feet. It will include not only production lines, but also research and development space, a showroom and 30,000 square feet of offices.
The building will serve as the headquarters for the company’s Portobello America division. Construction is expected to be completed by the end of next year. Portobello estimates the state-of-the-art facility will create 220 local jobs.
The 92-acre site is located on the former Tennessee Speedway Dirt Racetrack on Interstate 40 about 70 miles east of Nashville. The region includes vast natural supplies of clay and feldspar. Baxter already serves as the location for one of two Portobello distribution centers in the U.S., with the other in Pompano Beach, Fla.
Portobello America’s CEO, Luiz Filipe Brito, says the construction of the factory is the next step in a strategy that began in 2018. Toronto-based Avison Young has been charged with raising $80 million in construction financing.
In other news around the industry….
07:13
Four companies recently joined the Leadership Society of the Natural Stone Foundation, an honor given to companies and individuals who have made sizeable contributions. The four are: Antolini Luigi & C., Arizona Tile, Genesee Cut Stone & Marble Co., and Miles Supply Co. All noted the work of the foundation and the Natural Stone Institute in offering support to the industry. Antolini CEO Alberto Antolini summed up the thoughts of many when he said, “We are proud of the good job the Natural Stone Institute and the Foundation are doing for the stone industry.”
The Foundation has also obtained pledges from all current Foundation board members, as well as many Natural Stone Institute board members and other industry leaders in an effort to raise $1.1 million in commitments through three-year tiered donations. During 2021, the Foundation has underwritten several webinars and provided funding for the ISO initiative. For more information on the Foundation, go to www.naturalstoneinstitute.org/foundation.
08:23
The Ceramic Tile Education Foundation – the CTEF – has hired Bradford Denny as its new executive director. The appointment became effective Nov. 1. Most recently, Denny was vice president of Nichols Tile and Terrazzo in Nashville, Tenn. He has also served as a board member of the National Tile Contractors Association – the NTCA — which recognized him as Tile Person of the Year in 2021 for his volunteerism to the industry. Denny will helm the CTEF from his home office in Nashville, while maintaining regular contact with CTEF volunteers, board members and staff, including Scott Carothers, CTEF director of certification and training.
09:10
And, MS International, Inc., — MSI – has been named one of the top five fastest growing companies in Orange County, Calif., by the “Orange County Business Journal.” MSI is recognized as a leading supplier of flooring, countertops, wall tile and hardscaping products in North America, and recently added hardwood and laminate to its product portfolio. From mid-2019 to mid-2021, the company has seen rapid sales growth, distribution expansion and new product line additions.
MSI President Raj Shah says the company’s vision remains the same: creating innovation, building a diverse product assortment of affordable and accessible products, developing a solid geographic network, nurturing attentive partnerships and building a culture of respect and teamwork.
Remember, for all the news in the hard surfaces industry, look for our online newsletter, Slab & Sheet. Our November/December issue of Stone Update Magazine will be arriving in e-mailboxes soon. And, for notes and a full transcript of this podcast, go to our website at www.radiostoneupdate.com. For Radio Stone Update, I’m K. Schipper and we’ll see you here again soon.
