ADV backs Asia, North America flooring manufacturer
ADV Partners has acquired a significant minority interest in CFL Technologies, a flooring materials business with a presence in multiple locations in the US, China, and Vietnam.
The private equity firm is currently deploying its second fund, which closed on $637 million in 2019. It typically invests in middle-market companies with enterprise values below $500 million, where Asia accounts the bulk of business. Targets often require bespoke financing solutions to address corporate and shareholder dislocations in addition to supporting growth.
CFL claims to be a global market leader in rigid flooring, focusing on hard-surfaced flooring products made from new materials. It has developed and holds patented technologies for flooring products based on water-resistant laminate, magnesium oxide, and stone polymer composite (SPC).
The company, which was founded in Shanghai in 2004, sells to home improvement retailers and distributors in 60 countries across North America, Europe, Australia, Asia Pacific, and the Middle East. It employs around 4,500 people.
Recent initiatives include a more than $140 million investment over 18 months into a 650,000-square-feet production facility in Georgia, US. CFL has also continued its push into China, opening a factory in Hunan province.
“We believe CFL is well-positioned to capture the paradigm shift from soft to rigid flooring, along with further geographical expansion and product diversification,” Jianyi Zhu, a co-founder and managing partner at ADV, said in a statement. He noted the growth opportunity in North America and Asia for SPC specifically.
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