H.I.G. Capital LLC, through portfolio company Lexmark Carpet Mills Inc., has purchased Northwest Carpet Inc. for an undisclosed price.
According to H.I.G., merging Lexmark and Northwest gives the Miami-based private equity firm a large presence in the hospitality carpet sector. The combined business brings decades of carpet design and manufacturing expertise under one roof.
Like Lexmark, Northwest is based in Dalton, Georgia - considered "the carpet capital of the world" due to the number of carpet mills and floor covering outlets that are scattered between Atlanta and Chattanooga.
Northwest, founded in 1977, saw the influx of workers from Mexico and Central America that flocked to Dalton over the years, especially in the 1990s, to work in mills.
Lexmark was founded in 1993 - at the height of the movement that would give the town its nickname. It has been owned by H.I.G. since September 2013.
The transaction displays H.I.G.'s tendancy to purchase companies in niche markets. In September, the firm inked a deal through its Brazilian affiliate and picked up two Brazilian digital media companies Grupo NZN and Click Jogos. Before that, HIG closed the sale of Capstone Logistics to the Jordan Co.
The private equity firm also recently sold American Hardwood Industries to Baillie Lumber and bought Net Trans Services and Worldwide Payment Systems.