Related Professionals
Company Overview
The Matworks, LLC is a privately held company based in Beltsville, MD just north of Washington, D.C. Founded in 1966, Matworks’ original business has evolved into a distributor and manufacturer of flooring product solutions for national big-box retail, pharmacy, grocery and hospitality customers (the “Products business”). The Products business supplies a broad line of carpet/luxury vinyl tiles, entrance systems, carpet/rubber/vinyl mats and related accessories for its customers’ facilities. In 2009, Matworks started TEC Services, a janitorial services business targeting the same national customer base as its Products business. The TEC Services business has experienced rapid growth, eventually surpassing the Products business in size, and today represents more than 80% of Matworks’ revenues.
Situation
The rapid growth and success of the TEC Services business has increasingly consumed the time and resources of the Matworks management team. Matworks intends to strategically bolster TEC’s growth via an acquisition program and the introduction of new services, which will only increase management’s focus on this business. In addition, TEC Services and the Products business have few operational synergies, different revenue models and separate employee bases. As a result, Matworks arrived at the difficult decision to divest its legacy Products business in order to solely focus on executing the TEC Services growth plan.
Solution
Matworks engaged Griffin Financial Group, LLC to act as its financial advisor in the divestiture of the Products business. Griffin has a long history with Matworks, having raised capital for the company in 2013 to recapitalize its balance sheet. Griffin assisted Matworks with the divestiture of the Products business by managing a competitive sale process with a select group of strategic buyers within the retail flooring products industry. Griffin’s process generated multiple proposals to purchase the Company, and ultimately resulted in the Products business being sold to Mountville Mills, Inc., a family-owned global manufacturer of matting products based in LaGrange, GA.
For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106. For more information on Griffin’s services in general, contact any one of our investment banking professionals.
