BuildDirect, a Vancouver-based online building materials marketplace, has acquired Superb Flooring & Design, a Troy, Michigan-based full-service flooring retailer. The purchase price was $10 million. BuildDirect, backed by Lyra Growth Partners, Mohr Davidow Ventures and Pelecanus Investments, this year went public through a reverse takeover.
VANCOUVER, BC, Nov. 17, 2021 /CNW/ – BuildDirect.com Technologies Inc. (TSXV: BILD) (“BuildDirect” or “Company”), today announced that it acquired Michigan-based full-service flooring retailer, Superb Flooring & Design LLC (“Superb” or the “Acquisition”) for a total purchase price of USD $10 million. The acquisition closed on the morning of November 17, 2021.
Superb is an established brand name serving Pro builder customers (home builders, condominium developers, commercial and residential contractors, interior designers, architects, and multi-family property managers) across the U.S. mid-West, which when compared with other Pro customer segments tends to be more concentrated, and larger in size and scale. In the period ended September 30, 2021 Superb generated unaudited revenue of over USD $18 million and greater than $2 million in EBITDA in the trailing 12 months.
Superb’s focus on exceptional customer service and over 50 years of collective experience provides BuildDirect with the opportunity to capture additional market share and on-the-ground expertise in serving the Pro customer. The Superb platform represents strong product selection assistance together with reliable project management, and installation services to its builder Pros. Leveraging the synergies available through BuildDirect’s digital and supply chain capabilities will advance Superb’s ability to serve its existing Pro customers and provides the potential to grow our combined market share in Michigan and the surrounding area.
“Uniting with Superb will enable BuildDirect to meet more customers where they are, helping them to adapt to a new home improvement digital era through our innovative digital platform and supply chain network,” said Dan Park, CEO of BuildDirect. “We’re confident in our strategy to leverage our digital and delivery platform, and becoming a true innovator in the space.”
Ethan Rudin, CFO of BuildDirect added, “As BuildDirect’s second acquisition in Michigan, we welcome the opportunity to work with the expert teams at both Superb and FloorSource to rapidly expand our combined share of the mid-West U.S. Pro market. Superb’s longstanding Pro builder customer base aligns directly with our strategy to acquire B2B-focused targets, increasing our Pro customer base, and improving the end-to-end experience for these key customers. Our acquisition pipeline remains robust with accretive opportunities at various stages of development.”
“BuildDirect and Superb are joining forces to offer a unique omnichannel experience to our customers,” said Lonnie Pukoff, founder of Superb Flooring & Design. “In addition to its digital platform, BuildDirect’s product selection, heavyweight shipping infrastructure, and offshore sourcing capabilities will create advantages for Superb. We are thrilled to work with BuildDirect to reach our common goal of providing quality service and products to our Pro customers.”
BuildDirect has purchased 100% of the fully diluted outstanding capital stock of Superb for a total purchase price of USD $10 million (the “Purchase Price”) and will be fully funded in cash. The Purchase Price is payable pursuant to an initial payment on close of the Acquisition, together with certain deferred payments following the closing date of the Acquisition a portion of which is subject to Superb’s achievement of certain performance metrics. The Purchase Price is also subject to customary post-closing working capital adjustments.
The Acquisition is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange (“TSXV”). BuildDirect does not expect shareholder or regulatory approval will be required. Management understands that this acquisition qualifies as an “Exempt Transaction” under TSXV Policy 5.3. No finder’s fees have been or will be paid by BuildDirect in relation to this acquisition.”
BuildDirect (TSXV: BILD) is an innovative technology platform for purchasing and selling building materials online. The BuildDirect platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking and more. BuildDirect’s growth, proprietary heavyweight delivery network, and digital reach have served to solidify its role as a ground-breaking player in the home improvement industry. For more information, visit www.BuildDirect.com.