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F5 takes to the floor with first-time share sale
Posted on Friday, 08 November 2019 11:02
F5 Finishes, a roll-up of commercial flooring companies, is playing it safe by filing a prospectus for an initial public offering that has a USD 48.59 million placeholder. The Californian installation-to-maintenance services provider has hired Maxim Group and Zelman Partners as joint bookrunners and Sanders Morris Harris as co-manager for the listing on Nasdaq. F5 was founded in 2007 and remained inactive until 2017, when it was repurposed to begin planning the acquisition of six businesses (founding companies) that operate across seven major metropolitan markets in the US. The group is a one-stop shop for flooring ranging from carpet, ceramic, concrete and cork to rubber, sports surfaces, stone and vinyl. In addition, it offers services such as the application of epoxy and industrial coatings, concrete polishing, flooring restoration and installation of building entry mat systems. Concurrently with, and as a condition to the closing of the listing, F5 is acquiring six founding companies to create one of the ten largest commercial flooring players in the US. On a pro forma basis, the resulting business had revenue of USD 111.30 million and adjusted earnings before interest, tax, depreciation and amortisation of USD 7.10 million in the 12 months ended 31st December 2018. In H1 2019, it booked pro forma net profit of USD 0.73 million on revenue of USD 53.74 million. Proceeds from the first-time share sale will finance the acquisition of: Carpet Services of Tampa., doing business as (dba) Resource Flooring in Florida; Maryland-based Contract Carpet Systems; and JD Shehadi, dba Shehadi Commercial Flooring in New Jersey. The other three targets located in California are: DS Baxley, dba DSB+; Premier Maintenance Group; and Universal Metro F5 is aiming become a leading domestic provider through these businesses that, together, have over 300 members representing over USD 4.50 billion in revenue and which may provide potential acquisition opportunities in the future. © Zephus Ltd