Live Ventures Incorporated (Nasdaq: LIVE), a diversified holding
company (“Live Ventures”), has acquired the outstanding equity
interests of Flooring Liquidators, Inc., a leading retailer and
installer of floors, carpets, and countertops to consumers,
builders and contractors in California and Nevada (“Flooring
Liquidators”). The transaction, valued at approximately $84
million, was financed through a combination of cash, debt,
including a $5 million note from Isaac Capital Group¹, and the
issuance of 116,441 shares of our common stock, representing a
3.78% dilution of Live Ventures’ fully diluted common stock.
As part of the acquisition, Live Ventures will retain Flooring
Liquidators’ existing management team and all 625 employees and
contractors.
Founded by Steve Kellogg in 1997, Modesto, California-based
Flooring Liquidators provides floor, cabinets, countertops, and
installation services in California and Nevada, operating 20
warehouse-format stores and a design center. Over the years, the
company established a strong reputation for innovation, efficiency
and service in the home renovation and improvement market. Flooring
Liquidators serves retail and builder customers through three
businesses: retail customers through its Flooring Liquidators
retail stores, builder and contractor customers through Elite
Builder Services, Inc., and residential and business customers
through 7 Day Stone, Inc.
“We are thrilled to add Flooring Liquidators to our family of
companies,” said Jon Isaac, President and CEO of Live Ventures,
“and we welcome all employees of Flooring Liquidators to the Live
Ventures family. This is the kind of company we love—run by a
visionary founder, staffed by talented people, and providing
products and services that individuals and businesses want and
need. It fits perfectly within our existing operation and our
‘buy-build-hold’ strategy. We expect the acquisition to increase
our overall revenues by approximately 50%, or about $125 million
per year, and grow in the coming years.”
As part of the transaction, Live Ventures also acquired
Floorable, LLC, the company’s franchise opportunity utilizing
proprietary in-home shopping mobile showrooms and an established
back-office support system along with K2L Leasing, LLC and SJ
&K Equipment, Inc.
“We’re very proud of what we’ve accomplished,” said Kellogg,
Flooring Liquidators’ founder and CEO. “We know there are strong
growth opportunities in all three of our divisions: retail,
builder, and mobile store. We look forward to collaborating with
Jon’s team to gain access to growth capital and to benefit from our
respective business expertise.”
Flooring Liquidators’ main websites are
www.flooringliquidators.net, www.sevendaystone.com, and
www.elitebuilderservices.com.
¹ Isaac Capital Group is a private company whose managing member
is Jon Isaac, Live Ventures’ President and Chief Executive
Officer.
About Live VenturesLive Ventures is a
diversified holding company with a strategic focus on
value-oriented acquisitions of domestic middle-market companies.
Live Ventures’ acquisition strategy is sector agnostic and focuses
on well-run, closely held businesses with a demonstrated track
record of earnings growth and cash flow generation. The Company
looks for opportunities to partner with management teams of its
acquired businesses to build increased stockholder value through a
disciplined buy-build-hold long-term focused strategy. Live
Ventures was founded in 1968. In late 2011 Jon Isaac, CEO and
strategic investor, joined the Board of Directors and later
refocused it into a diversified holding company. The Company’s
current portfolio of diversified operating subsidiaries includes
companies in the textile, flooring, tools, steel, entertainment,
and financial services industries.
Forward-Looking and Cautionary Statements
The use of the word “company” or “Company” refers to Live
Ventures Incorporated and its wholly-owned subsidiaries. This press
release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, each as amended, that are intended to be
covered by the “safe harbor” created by those sections. In
accordance with such safe harbor provisions, statements contained
herein that look forward in time that include everything other than
historical information, involve risks and uncertainties that may
affect the company’s actual results, including statements relating
to our belief that Flooring Liquidators fits perfectly within our
existing operation and our ‘buy-build-hold’ strategy, Flooring
Liquidators’ business model offering Live Ventures a significant
opportunity for reinvestment of capital, the significant growth
opportunity in all three Flooring liquidators divisions, our belief
that the transaction will provide Flooring Liquidators better
access to both growth capital and management expertise, and our
expectation that the acquisition of Flooring Liquidators will
increase the Company’s total revenues by approximately 50 percent,
or approximately $125 million per year. These forward-looking
statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes,"
"estimates," and similar statements. Live Ventures may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission on Forms 10-K and
10-Q, Current Reports on Form 8-K, in its annual report to
stockholders, in press releases and other written materials, and in
oral statements made by its officers, directors or employees to
third parties. There can be no assurance that such statements will
prove to be accurate, and there are a number of important factors
that could cause actual results to differ materially from those
expressed in any forward-looking statements made by the company,
including, but not limited to, plans and objectives of management
for future operations or products, the market acceptance or future
success of our products, and our future financial performance. The
company cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set
forth in the company’s Annual Report on Form 10-K for the fiscal
year ended September 30, 2022 (available at http://www.sec.gov).
Live Ventures undertakes no obligation to publicly update or revise
any statements in this release, whether as a result of new
information, future events, or otherwise.
Contact:Live Ventures IncorporatedGreg Powell,
Director of Investor
Relations725.500.5597gpowell@liveventures.comwww.liveventures.com
Source: Live Ventures Incorporated
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