$15M Investment for Stone Distributor
NEW YORK – Stone Source, a Manhattan-based stone distributor, will be fueling future growth with approximately $15 million in new funding.
The company received $8.2 million in late August from the New York State Common Retirement Fund (CRF) through Founders Equity, a private equity firm. That investment leveraged additional capital from outside managers for a total investment of about $15 million in the company
Stone Source President/CEO Jeff Green, and Vice President/COO Mark Shedrofsky, the company’s founders, retain their positions and will continue holding significant equity interests in the company.
The $8.2 million from the state pension monies came from capital committed to both Founders Equity and the Hudson River Co-Investment Fund in which the CRF is the majority investor; Manhattan-based Fieldston Investors provided additional equity. The investment came as part of an New York private equity plan that’s made $765 million available to in-state companies since 1999.
Stone Source plans to use the new capital for enlarging its inventory and warehouse space in New York and expanding its California operations, according to Crain’s New York Business.
“Since Stone Source was founded more than 18 years ago, the company’s growth has been driven by our ability to provide architects, designers and end users with an edited collection of sophisticated, top-quality natural stone and other decorative surfaces, along with the highest levels of professionalism and responsive service,” Green said. “Our partnership with Founders Equity, the CRF, the Hudson River Fund and Fieldston will give Stone Source access to the capital needed to realize our full global growth potential, both organically and through acquisitions.”
“We at Stone Source pride ourselves on constantly searching for exciting new materials from the world’s best sources to satisfy the demands of our customers and providing reliable expert consultation,” Shedrofsky added. “We believe our partnership with Founders Equity aligns our company with a financial expert who believes in the strength and growth potential of our company’s product lines and views Stone Source as an excellent platform to build on.”
“Stone Source is a well-run company that enjoys an outstanding reputation in the marketplace for its collection of quality products,” said John Teeger, a partner at Founders Equity. “The management team has done an excellent job of growing the business by identifying successful new product lines and helping provide solutions to its customers. We look forward to using our creative and entrepreneurial approach to helping the company leverage its existing product lines and expand through opening new branch locations throughout the United States.”
Stone Source distributes natural stone, quartz surfaces and decorative tiles, among other products. Besides its Manhattan headquarters, the company operates branches and showrooms in Boston, Chicago and Washington, plus sales offices in Philadelphia and Los Angeles.