Keystone Capital, Inc. (“Keystone”) is pleased to announce that it has completed a recapitalization and partnership with the shareholders of Scott Group Custom Carpets, Inc. (“Scott Group” or “the Company”).
Scott Group is the U.S. market leader in the design and manufacture of hand-made and machine-made custom wool (and silk and cashmere wool/silk blend) carpets and rugs for a variety of luxury applications. The Company is a leading supplier to the business aviation, yacht, and high-end residential and commercial markets both in the U.S. and abroad. With a rich history dating back to 1969, Scott Group produces 100% American made carpets at its headquarters in Grand Rapids, Michigan and has a network of showrooms throughout the U.S. For more information on Scott Group, please visit the Company’s website at www.scottgroup.com.
“We are extremely excited to be a part of the future of Scott Group and about the partnership we have formed with the management team,” commented Scott Gwilliam, Managing Director of Keystone Capital. “Scott Group’s niche market position, impressive business model and strong management team, along with their focus on bringing in a long-term, patient partner made this a perfect situation for Keystone.”
The prior ownership team consisting of Michael Ruggeri (President), Richard Ruggeri (Vice President) and Timothy Hill (Vice President, Operations and Finance) will remain significant shareholders and will continue to lead the day to day operations of the Company into the future.
“We are energized about the partnership between Keystone and Scott Group,” commented Mike Ruggeri, CEO of Scott Group. “This partnership will allow our team to continue running the business, provides access to greater resource levels and will accelerate our strategic growth plan for Scott Group.”
Scott Group will be pursuing acquisitions of complementary businesses with the completion of this recapitalization. Areas of interest for the Company include suppliers of luxury fabrics and interior products serving similar end markets (i.e. business jets and interior design).
Terms of the transaction are not being disclosed. Senior debt financing was provided by The Private Bank, and legal counsel was provided to Keystone by Kirkland & Ellis LLP.
Jason Van Zant