Floor & Décor Holdings Inc., an Atlanta-based company that has turned the notion of online sales replacing brick-and-mortar stores on its head, went public last week with Wall Street’s most successful IPO so far this year.
The company is a specialty retailer of hard-surface flooring and accessories whose current Savannah-area presence includes a 68,000-square-foot retail store/design center on Victory Drive and a distribution center.
That presence is set to grow by leaps and bounds as the company announced last fall that it will expand its import distribution center here with the construction of a new 2.5 million-square-foot facility located at Morgan Business Center in Bloomingdale.
“That was a competitive project between us and Charleston,” said Trip Tollison, President and CEO of the Savannah Economic Development Authority, whose organization worked with the state, the Georgia Ports Authority and the City of Bloomingdale to win the project.
An opening ‘pop’
Floor & Décor Holdings Inc. opened April 27 on the New York Stock Exchange under the trading symbol FND, offering 10 million-plus shares of common stock at the IPO price of $21 per share, $4 above the expected range of $16-$18 per share.
When the markets opened, however, shares were already trading at $30.25, prompting the Financial Times and others to declare Floor & Décor’s out-of-the-gate 44-percent jump “the biggest opening ‘pop’ for a U.S. listing this year.”
Those familiar with the company are not particularly surprised.
“Floor & Décor has an established presence in Georgia and we have witnessed significant growth from the company over the years,” Chris Carr, then Commissioner of the Georgia Department of Economic Development said last fall.
Carr, now Georgia’s attorney general, said the state looked forward to working alongside its partners at SEDA and the Georgia Ports Authority to support the company as it expands.
Nicholas Durante, a director and client relationship executive at PricewaterhouseCoopers in New York City, was enthusiastic about Floor & Décor from the start. Writing for Seeking Alpha.com the day before the initial offering, he declared the company’s stock a buy and reiterated his confidence in its future.
“Floor & Décor has had of eight years of double-digit growth of comparable stores, averaging over 15 percent,” he said. “The company also has the size that allows it to cut out the middlemen and get products directly from the manufacturers.”
An area asset
Founded in 2000, Floor & Décor currently operates 72 stores across 17 states. The company offers tiles, wood, laminate and natural stones, installation accessories and other services, providing its clients – both the general public and professional contractors — with a one-stop solution.
Tollison said he’s delighted that the Savannah area will play such an important role in the company’s growth.
“The Bloomingdale facility promises to be critical in the future success of Floor & Décor,” he said. “Since the project came forward, we have had nothing but great experience with them.
“This is an exceptionally hard-working and trustworthy group. They have done everything they said they would and their success is well-deserved,” Tollison added.
“They are a true asset to the Savannah-area business community.”