Q.E.P. announced that it has agreed to acquire certain assets of Kraus Group. Kraus is a leading North American distributor of various hard surface flooring, carpet tile, and related accessories. Kraus will operate as a business unit of Q.E.P. The deal is expected to be complete in early October 2018.
Kraus stated in a separate announcement that "following an extensive marketing process, an agreement has been reached that will see Q.E.P. acquire Kraus’ hard surface and carpet tile distribution business. Kraus’ broadloom manufacturing operations in Waterloo, Ontario, will cease operations."
In the same release, Shawn Davies, president and CEO of Kraus, noted: “We tried our very best to find a solution and looked at all options available, including a possible buyer for the whole business, but all those options have now been exhausted. The fact is this business can no longer continue as currently structured, so we have entered proceedings under the Companies’ Creditors Arrangement Act (CCAA) process. The layoffs we have issued will become indefinite, pending the outcome of the CCAA process.”
He added, “We have also announced an agreement that will offer our hard surface flooring and carpet tile distribution business an opportunity to continue under new ownership. Our agreement with Q.E.P. will ensure the Kraus brand can continue forward in the marketplace.”
The closure of the broadloom manufacturing plant is expected to impact 256 employees, Kraus noted.
For more information, visit www.qepcorporate.com.