Blackstone has agreed to acquire Interior Logic Group, a provider of interior design, supply chain and installation management solutions to single-family homebuilders. The seller is Littlejohn & Co. The total value of the deal is about $1.6 billion.
NEW YORK–(BUSINESS WIRE)–Blackstone (NYSE:BX) today announced that private equity funds managed by Blackstone (“Blackstone”) have reached a definitive agreement to acquire Interior Logic Group Holdings, LLC (“ILG”) from Littlejohn & Co. LLC (“Littlejohn”), Platinum Equity and other equity holders, for a total transaction value of approximately $1.6 billion.
ILG is a leading, data-driven and technology-enabled provider of interior design, supply chain and installation management solutions to several of the nation’s largest single-family homebuilders. The company delivers to homebuilders and prospective homeowners critical information and support during the journey of moving into a new home, and utilizes technology, data, design expertise and supplier relationships to help enable buyers to complete their home purchases. ILG operates across 37 states, providing its capabilities to help enable the completion of nearly 100,000 homes per year.
Seth Meisel, a Senior Managing Director at Blackstone, said: “We are very excited about ILG’s future. Already an industry leader, ILG has tremendous potential to build on its strong foundation supporting homebuilders and homeowners. We look forward to partnering with ILG in the years ahead to help expand its geographic reach, enhance its technological innovation, and develop new opportunities.”
Vikram Suresh, a Managing Director at Blackstone, added: “ILG’s technology, relationships and purpose position it very well in the single-family real estate value chain. We look forward to partnering with ILG’s leadership team and providing Blackstone’s operational resources and expertise to support ILG, its homebuilder customers and prospective homeowners.”
Alan Davenport, Chief Executive Officer and Chairman of ILG, said: “This announcement is a testament to our team’s hard work and the company we have built. As we look to the future, we believe Blackstone will be an excellent strategic partner for our business as we accelerate our planned growth initiatives and provide additional support and expertise to our value-added technology solutions for our customers. Additionally, Littlejohn and Platinum Equity have been terrific partners, providing significant operational expertise and resources, and helping us establish our position as a market leader.”
Steven Raich, a Managing Director at Littlejohn, said: “ILG is a superb example of Littlejohn’s approach to building businesses. We are proud of what we accomplished by supporting management, investing in organic growth and executing strategic M&A, and believe that ILG’s best days are ahead.”
Platinum Equity Partner Jacob Kotzubei and Platinum Equity Managing Director Todd Golditch stated: “ILG showcased the power of Platinum’s operational approach, growing significantly under our stewardship to the benefit of its customers, partners, employees and their communities. It has been an outstanding investment and a testament to the hard work of everyone involved. We wish the company continued success under new ownership.”
The transaction is subject to customary closing conditions, and is expected to close in the second quarter of 2021. RBC Capital Markets, LLC served as sole financial advisor to Blackstone. Kirkland & Ellis LLP is serving as legal advisor to Blackstone. Committed debt financing for the transaction is being provided by Citi and Goldman Sachs & Co. Citi served as lead financial advisor and Goldman Sachs & Co. and BofA Securities also served as financial advisors to ILG. Sheppard, Mullin, Richter & Hampton LLP is serving as legal advisor to Littlejohn and Platinum Equity and Alston & Bird LLP is serving as finance counsel.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $619 billion in assets under management as of December 31, 2020 include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
About Littlejohn & Co., LLC
Littlejohn & Co. is a Greenwich, Connecticut-based investment firm focused on private equity and debt investments primarily in middle market companies. With approximately $12 billion in regulatory assets under management, the firm seeks to 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 approximately $23 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners V, a $10 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. 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. Over the past 25 years Platinum Equity has completed more than 300 acquisitions.