In the News – Floor & Decor Revives IPO Plans : Sources
By: Lauren Hirsch
U.S. flooring and tile products retailer Floor & Decor Holdings Inc is getting ready for an initial public offering that could value it at more than $1 billion, including debt, after it shelved such plans last year, people familiar with the matter said.
Floor & Decor, which has more than $100 million in 12-month earnings before interest, tax, depreciation and amortization, has interviewed investment banks to appoint underwriters for the IPO, the people said.
Floor & Decor’s IPO preparations signal confidence in the recovering IPO market. Its rival Lumber Liquidators Holdings Inc (LL.N) has been under pressure since March 2015, when a CBS “60 Minutes” report alleged that the company’s laminate products sourced from China contained toxic levels of formaldehyde. Last year, Floor & Decor withdrew a registration for an IPO that it filed in 2014 with the U.S. Securities and Exchange Commission. The people said the company has decided to seek new pitches from investment banks for an IPO this year.
The sources asked not to be named because the preparations are confidential. Floor & Decor and its private equity owners, Ares Management LP (ARES.N) and Freeman Spogli & Co, offered no comment.
In its earlier IPO plan, Floor & Decor had decided to list on the New York Stock Exchange. Underwriters included Bank of America Corp (BAC.N), Goldman Sachs Group Inc (GS.N), Barclays Plc (BARC.L) and JPMorgan Chase & Co (JPM.N). More than five retailers went public in 2016, down from 12 the previous year, according to Thomson Reuters data. In recent months, however, stocks of retail companies have risen along with consumer optimism.
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