NEW YORK, March 12, 2019 /PRNewswire/ -- Ridge Road, a leading owner-operated holding company, is pleased to announce the sale of one its core active holdings, Kitchen Art, to Ferguson Enterprises, Inc. ("Ferguson"). Ferguson is the largest U.S. distributor of residential and commercial plumbing supplies.
Founded in Coral Springs, FL in 1989, Kitchen Art is one of America's largest kitchen and bathroom cabinetry design, installation and remodelling companies. As an industry leader focused on the Florida market, the Company partners with mid-to-high-end builders that develop master planned communities to offer home buyers customized cabinet upgrade programs.
Ridge Road acquired Kitchen Art in 2014 and has since, in collaboration with its co-investor Aeterna Capital Partners and management, developed the business into a leader in the Florida market. Under Ridge Road's and Aeterna's ownership, the business expanded from a single-site location in Coral Springs to three outlets across the state, implemented efficiencies including a company-wide ERP system to reduce wastage, improve visibility, and enhance margins, and generated significant gains in both revenues (which grew more than 2x) and pre-tax earnings (which increased approximately 4x).
Jeff Collamore, CEO of Kitchen Art, stated "Ridge Road and Aeterna have been terrific partners in every sense of the word. They have been an invaluable resource to me and my team as we have grown the business together. We are excited about our new relationship with Ferguson but will undoubtedly miss the advice and guidance of our former partners. They did everything they said they were going to do – and more."
Ridge Road's Michael Mager commented, "We are thrilled with what the team at Kitchen Art was able to accomplish. When we acquired Kitchen Art in 2014, we believed that there was significant opportunity for growth and that with the right pieces in place, the potential for this business was significant. Doug, Jeff, and the whole KA team were able to execute in a manner that exceeded our expectations. We are delighted to have played a constructive role in the development of this business, and we are proud that it is stronger today than at any time in its history. We are excited to see how Ferguson plans to expand the company in coming years and wish them the best."
Added Doug Haynes, former CEO and Chairman of Kitchen Art, "Five years ago, Kitchen Art's founder was looking for a smooth transition away from a business she started with her family. The business had a proud 25-year history in Florida and Ridge Road and Aeterna not only provided the founder with a welcome liquidity solution but, in assuming majority ownership, they were always respectful of the Company's roots. Ridge Road and Aeterna maintained the business' core DNA, but they also added a level of energy and insight that proved to be extremely valuable."
Slate Partners served as financial advisor and Hogan Lovells US LLP served as legal advisor to the sellers.
About Ridge Road
Ridge Road is an owner-operated investment holding company. Ridge Road employs a permanent capital base to acquire founder-led businesses with proven business models and capacity for growth. Since its establishment in late 2012, the group has taken control positions in multiple businesses globally, completing 10 transactions. For more information, please visit: http://ridgeroadpartners.com/
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SOURCE Ridge Road