By Colin Kellaher
Select Interior Concepts Inc. said it agreed to sell its residential design services segment to Blackstone Group Inc. portfolio company Interior Logic Group for $215 million in cash.
The Atlanta distributor of interior building products said it will use proceeds from the sale to repay all of its debt and capital lease obligations, adding that it will now focus its efforts on the stone and tile distribution market.
Select Interior, which posted 2020 revenue of $554 million, said the residential design services segment had revenue of $332.5 million last year.
The company said the sale, which it expects to complete in mid-2021, will meaningfully improve its total margin profile while significantly reducing its capital spending needs.
Select Interiors said it expects full-year adjusted Ebitda of $31 million to $33 million, excluding the residential design services segment.
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(END) Dow Jones Newswires