L.A.R.K. Industries Inc. completed a dividend recapitalization that resulted in a distribution for investors. Financial terms weren’t announced. L.A.R.K. funded the distribution through cash proceeds generated via a term loan refinancing. Anaheim, California-based L.A.R.K, which does business as Residential Design Services and Commercial Design Services, produces outsourced design centers and interior surfaces installation services. Trive Capital acquired L.A.R.K. in September 2014.
DALLAS, Texas and ANAHEIM, California
Trive Capital (“Trive”) is pleased announce its recent distribution to investors in connection with a dividend recapitalization of L.A.R.K. Industries, Inc. (“L.A.R.K.” or the “Company”).
In July 2015, under 11 months into the Fund’s hold period, L.A.R.K. completed the successful dividend recapitalization. L.A.R.K. funded the distribution through cash proceeds generated via its term loan refinancing which was enabled through strong Company operating performance and cash generation. The new term loan provides the Company with a substantially lower cost of debt capital, while also enhancing operational flexibility as L.A.R.K. continues to pursue its growth strategy.
Chris Zugaro, Partner at Trive, commented, “Core to Trive’s strategy is returning capital to our investors early in our investment hold period. This distribution represents a realization of that strategy from a company, L.A.R.K., which has performed exceptionally since closing and in our opinion is well positioned for the future.”
“L.A.R.K. de-levered significantly since closing less than a year ago. Intense focus on driving operational improvements and rapid growth have generated considerable free cash flow. The recapitalized structure allows for an early distribution to the Company’s shareholders while also providing L.A.R.K. the flexibility to continue scaling with its customers,” stated Dan Lenahan, a Vice President at Trive.
About L.A.R.K. Industries
L.A.R.K. Industries, Inc., dba Residential Design Services and Commercial Design Services (www.resdesign.com), is a leading provider of outsourced design centers and interior surfaces installation services. Headquartered in Anaheim, California, L.A.R.K. services large residential homebuilders and commercial real estate developers in the Western United States. The Company was founded in 1988 and prides itself on its reputation for delivering high quality, customized sales and installation solutions for a wide range of products, including flooring, countertops, wall tiles, window treatments, finished carpentry, and other interior finishes.
About Trive Capital
Trive Capital (www.trivecapital.com) is a Dallas, Texas-based private equity firm focused on making control private equity investments in companies based in North America. Trive utilizes a proven operational best practices approach and identifies actionable opportunities that allow businesses, shareholders, and employees to realize their full long-term potential.