SCI Flooring
July 11, 2023: Seven East Capital, in partnership with Rainier Partners and Deerpath Capital Management, acquired SCI Flooring (“SCI”), a leading full-service floor covering services provider serving property managers and owners across the Midwest.
Background
Seven East Capital’s investment criteria focuses heavily on the businesses that we have either dealt with or been the end customer of with our other two entities, The Hartmann Group (casino/gaming & real estate development) and Elm Tree Communities (multi-family).
Given the development theme, we have a particular interest in building products businesses that feature recurring customer engagement and/or a service aspect:
Painting
Flooring
Roofing
Garage/Overhead Door
Etc.
Industry Expert
Another critical component of our approach is the recruitment and involvement of a former c-suite executive specific to the industry.
In this case, Seven East Capital partnered with John Noyd (LinkedIn). Most notably, John spent five years as CFO of 50 Floor, a portfolio company of AEA Advisors.
The combination of Rainier’s building products expertise and John’s experience enabled Seven East to first select the appropriate target and then build a growth plan to at least double the size of the business in five years.
Add-On Acquisitions
We are now actively seeking add-on acquisition targets to establish a presence in markets across the Midwest.
Seven East will place the highest priority on the flooring companies focused on the multi-family, commercial, and builder end markets.
Please contact Brett Hartmann (brett.hartmann@seveneastcapital.com) regarding all relevant opportunities.