LOS ANGELES and MIAMI — Platinum Equity portfolio company Paramount Global Surfaces on Friday announced the acquisition of Stone Source from a group of investors led by Founders Equity.
Financial terms were not disclosed.
Stone Source, headquartered in New York, distributes natural stone, ceramic tile and other decorative surfaces to contractors and consumers via the architect and design channel for commercial and high-end residential use.
"The commercial flooring market began to rebound in 2021 and is poised to experience meaningful growth," said PGS CEO Mike Draves. "Stone Source has a well-recognized brand, talented employees and an outstanding reputation, which will help us capitalize on these tailwinds as we continue to grow and diversify our business."
Stone Source's products are used primarily in a broad range of commercial flooring applications similar to PGS's Ceramic Technics division, which also distributes into the commercial flooring market. Stone Source also distributes products for residential applications and will complement the Happy Floors division of PGS, which serves the residential market through a network of 6,000+ independent dealers.
"Joining forces with PGS will provide Stone Source the benefit of greater scale and enable delivery of a more comprehensive product offering to our customers," said Stone Source CEO Joe MacIsaac. "I'm proud of the way our company has performed and navigated the challenges posed by the pandemic over the past two years. This is an exciting new opportunity and I look forward to the road ahead."
PGS is a portfolio company of Platinum Equity, which acquired the business last year.
"The combination of PGS and Stone Source accelerates our plan to create a national flooring distributor with a strong presence in both the residential and commercial markets," said Platinum Equity partner Jacob Kotzubei and managing director Nick Fries in a statement. "We will continue working closely with the management team to invest in organic and acquisitive growth that helps diversify the company by product, customer and geography."