Republic Elite Interiors
Re-focusing Core Competencies Leading to Profitable Growth
Portfolio Company: Republic Elite Interiors
Situation: FC Crestone invested in REI at the trough of residential construction in 2010, when the company was facing possible liquidation. At that time, FC Crestone entered into an agreement to provide operating capital in exchange for debt securities and a warrant to purchase a majority of the Company. The investment was used to refinance the existing senior lender and to provide much needed additional capital to fund the turnaround plan.
FC Crestone Value Add: FC Crestone worked closely with an operating partner and REI management to transform the business through:
- Materially improving REI’s margin structure and business processes
- Strategically repositioning REI including A) exiting non-core retail businesses and B) refocusing REI on its core cabinet and countertop business to exclusively address the growing multi-family market
- Growing the business through completing a synergistic add-on acquisition
- Strengthening the REI management team
Outcome: In 2017, FC Crestone sold REI to a strategic buyer.