Interior Logic Group, Inc. and Interior Specialists, Inc. Announce Merger

Interior Logic Group, Inc. and Interior Specialists, Inc. Announce Merger

• Creates the largest interior finish services company in the US with $1.5 billion in revenue
• Paves the way for new investments in facilities, technology and customer service
• Creates a national brand with a footprint reaching from coast to coast

ATLANTA, GA and IRVINE, CA, (May 1, 2018) – Interior Logic Group, Inc. (ILG) and Interior Specialists, Inc. (ISI), the two largest companies in the interior finishes industry, announced today they have signed a definitive agreement to merge under the Interior Logic Group name. Together, the new company will provide installation services to homebuilders, multifamily owners and big box retailers across the country. Interior Logic Group will also be the largest nationwide provider of outsourced design centers to homebuilders.

The new company will have over 4,300 employees, 225 locations, and a presence in 42 of the top 50 homebuilding markets in the U.S.  Alan Davenport, current President & CEO of ISI will become President & CEO of the new company. Mark Fikse, current President & CEO of the existing Interior Logic Group, will become Executive Vice President, Business Development and Operations of the new company. The new company will be headquartered in Irvine, CA.

“There are a lot of similarities between our companies. This merger will allow us to leverage the strengths and the technologies we had both developed to deliver greater value to our customers,” said current ISI President & CEO Alan Davenport. “I believe we will be distinguished by our innovative technology, extensive design center services, and our commitment to grow with our customers through partnerships and trusted relationships. These relationships have been cultivated by both companies since we were established.”

“The two companies are merging to create a national interior solutions footprint, capable of meeting the service requirements of homebuilders, multifamily apartment owners/operators and large retail customers. The financial strength of our new company will allow us to invest more strategically in facilities, technology and our people, matching the changing needs of our customers,” added current ILG President & CEO Mark Fikse.

The new $1.5 billion company will be owned jointly by Littlejohn & Co., LLC, which acquired ISI in 2014, and Platinum Equity, which acquired ILG in 2017, in addition to its senior leadership team. The deal is expected to close during the second quarter of 2018. Moelis & Company LLC is acting as the joint M&A advisor on the transaction. Bank of America Merrill Lynch will act as lead arranger and bookrunner on the debt financing.

The companies also confirmed that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), with respect to the merger, expired effective April 30, 2018 at 11:59 p.m., New York City time.

About Interior Logic Group, Inc.
Interior Logic Group, Inc., is a leading provider of turn-key design center services and interior finish solutions to single family residential homebuilders, apartment owner/operators, and fulfillment partners. The Company has long-standing, entrenched customer relationships and its customer base includes a diverse mix of national and regional customers. Primary products handled on a turn-key basis include flooring, cabinets, countertops, and window treatments. For more information about Interior Logic Group visit www.interiorlogicgroup.com or email communications@interiorlogicgroup.com.

About Interior Specialists, Inc.
Interior Specialists, Inc. (ISI) is the nation’s leading provider of interior design, design center management and installation services operating from over 90 locations across the United States. ISI’s customers include the nation’s preeminent single-family, multi-family and commercial builders. ISI both supplies and installs flooring, cabinetry, countertops, window coverings and builder construction options, including appliances, and it is the leading full-service provider of outsourced homebuilder-branded design centers.  For more information about Interior Specialists visit www.interiorspecialists.com.

About Littlejohn & Co.
Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With over $7 billion under management, the Firm seeks to create long-term value for its investors and build sustainable success for its portfolio companies through a disciplined approach to engineering change. For more information about Littlejohn, visit www.littlejohnllc.com.

About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. For more information about Platinum Equity, visit www.platinumequity.com.

Media Contacts
For Platinum Equity:
Dan Whelan
310-282-9202
dwhelan@platinumequity.com

For Littlejohn & Co.:
Jonathan Gasthalter / Nathaniel Garnick
Gasthalter & Co.
212-257-4170