Select Interior Concepts to Sell Its RDS Segment to Interior Logic Group for $215 Million

• $215 million purchase price provides attractive valuation for RDS and to shareholders
  
• Transforms balance sheet to debt-free, strong net cash position providing significant financial flexibility
• Concentrates efforts on maximizing value in the stone and tile distribution market and expands margin profile

ATLANTA, May 09, 2021 (GLOBE NEWSWIRE) -- Select Interior Concepts, Inc. (NASDAQ: SIC), a premier installer and distributor of interior building products, today announced that it has entered into a definitive agreement to sell its Residential Design Services segment (“RDS,”) in an all-cash transaction to Interior Logic Group (“ILG”), a portfolio company of Blackstone. The transaction is valued at approximately $215 million, subject to customary purchase price adjustments, and is expected to close mid-2021, subject to customary closing conditions which includes the receipt of required regulatory approvals. SIC intends to use the proceeds from the transaction to repay all its outstanding indebtedness and capital lease obligations.

For the year ended December 31^st, 2020, SIC reported RDS segment revenue of $332.5 million, and RDS’ segment Adjusted EBITDA of $16.7 million representing 12.8x purchase price to 2020 Adjusted EBITDA. For the 12 months ended March 31, 2021, SIC reported RDS segment revenue of $333.5 million; RDS’ segment Adjusted EBITDA was approximately $19.0 million representing 11.3x purchase price to LTM Adjusted EBITDA.¹

“When I joined SIC last June, I promised that my highest priority would be to focus on building shareholder value and this transaction is a significant accomplishment towards that objective,” said Chief Executive Officer Bill Varner. “It unlocks significant value for SIC shareholders and provides us with a clean balance sheet to focus our management on further building shareholder value with our remaining high-margin, fast growing ASG segment. As a leading provider of interior finish and design solutions for the single-family homebuilding market, ILG is a natural fit for RDS’ customers, partners, and employees. The RDS team has done a terrific job of driving growth and operational improvements, and we are confident that they will continue to thrive as part of the ILG team.”