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Breaking Flooring News

Bauwerk Group AG Acquires Somerset Hardwood Flooring

Bauwerk Group Acquires Somerset.jpg
May 2, 2022

Swiss based Bauwerk Group AG announced the acquisition of Somerset Hardwood Flooring, a vertically integrated forest products company based in Somerset, Kentucky, effective May 1st, 2022. With the acquisition, Bauwerk Group AG strengthens its global profile and gains a stronger foothold in the growing North American flooring markets.

The transaction is characterized by the strongly complementary nature of the two companies. Somerset Hardwood Flooring has an established brand and market position in the USA with a strong presence in the relevant sales channels. Known for its solid hardwood flooring, Somerset Hardwood Flooring will be able to benefit from Bauwerk Group's expertise in multilayer engineered hardwood flooring. The companies will also benefit from a joint specialization on hardwood flooring, their shared DNA in production and a mutual focus on quality products. The combined company is establishing itself as the global market leader in quality hardwood flooring with a geographically well diversified turnover of over $400M at a production volume of over 120 million square feet.

"With Somerset Hardwood Flooring, we have found the ideal partner for Bauwerk Group AG's U.S. expansion. All the requirements we have set for an acquisition, such as good market positioning, own production and a fit in terms of values and people, apply to Somerset Hardwood Flooring," states Patrick Hardy, CEO and president of Bauwerk Group. "We are pleased to be able to continue the success story of Somerset Hardwood Flooring and the legacy of founder Steve Merrick."

"Both parties bring key success factors to the table which, when combined, will enable the next step for both companies," observed Somerset Hardwood Flooring founder Steve Merrick of the transaction. "Under the aegis of Bauwerk Group, Somerset Hardwood Flooring will be able to further play to and accentuate its strengths."

The Somerset Hardwood Flooring brand will remain and complement the other brands in the Bauwerk Group portfolio (Bauwerk Parquet and Boen), with all three brands retaining their respective regional focuses and product identities. Bauwerk Group can rely on the proven management team at Somerset Hardwood Flooring, led by long-time Somerset Hardwood Flooring VP Sales & Marketing Paul Stringer as the new CEO/President.

Merrick will continue to own and operate his other forest products businesses in the community, including Somerset Hardwood Lumber, Inc. (which will become Merrick Hardwoods, Inc.), Somerset Biofuel, Inc. (d/b/a Somerset Pellet Fuel), Kentucky Hardwood Lumber Company, Inc., and Interstate Hardwoods, Inc. Additionally, the Merrick companies will continue to manufacture and market their unfinished solid wood flooring brand.

The parties agreed not to disclose financial details of the transaction.

KEYWORDS: mergers and acquisitions solid hardwood flooring

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