Las Vegas-based Live Ventures Inc. closed its $84 million deal to purchase Flooring Liquidators Inc., a retailer that offers installation services for flooring, cabinets and countertops.
Live Ventures announced the transaction Thursday and noted that it would add an estimated $125 million per year to the company’s revenue. The deal was financed through a mix of cash, debt and the issuance of 116,441 shares of common stock, which equates to $4 million, according to Live Ventures CEO Jon Isaac.
Isaac said the holding company, formerly an internet marketing company, is like a “mini Berkshire Hathaway” that is the opposite of a private equity firm.
“Private equity firms buy and slash and flip,” Isaac said. “We buy, build, and hold and because of that we’ve attracted many sellers of companies nationwide.”
The firm plans to retain Flooring Liquidators’ existing management team and its 625 employees and contractors.
Founded in 1997 by Steve Kellogg, Flooring Liquidators offers installation services in California and Nevada, and the Modesto, California-based company operates 20 stores and a design center, according to the news release.
“We know there are strong growth opportunities in all three of our divisions: retail, builder, and mobile store. We look forward to collaborating with Jon’s team to gain access to growth capital and to benefit from our respective business expertise,” Kellogg said in a news release.
Isaac said Flooring Liquidators is “very profitable” and the plan is to grow its retail presence and other offerings, although no specific plans have been decided.
“California is just the beginning. We plan on growing this nationwide over the next few years,” Isaac said. “California — if he’s able to make it there, he can make it anywhere in the United States. I’m serious about that because of the taxes and the regulations and everything not being so corporate-friendly in California.”
Live Ventures’ portfolio includes Vintage Stock, a retailer selling movies, video games, music and other items, carpet mill Marquis Industries Inc., steel manufacturer Precision Marshall and independent brokerage and investment bank SW Financial.