Hilco Capital LP of Chicago has put up $6 million for the management buyout from the Dalton, GA-headquartered parent, which sold its rug division earlier this year to Springs Industries of South Carolina. The North Texas management group also has secured a $40-million revolving credit facility from Congress Financial Corp. The credit facility will be used to advance an expansion.
The North Texas division is a wholesale distributor of floor coverings to independent retailers, buying groups, home centers and builders. In addition to Texas, its network takes in Louisiana, New Mexico, Arkansas, Tennessee, Colorado, Mississippi, Oklahoma, Nevada, Arizona and California. Hoovers Online says Brinkman has 39 distribution centers primarily in the western US, but the plan is to operate out of 13 locations strategically located in the Southwest and West.
In a prepared statement, Eddie Lesok, CEO of L.D. Brinkman, credited Hilco with pulling together the deal. "They delivered on what they promised," he said.
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