Q.E.P. Co., Inc. announced that on Friday it completed the acquisition of hardwood flooring maker ArborCraft LLC, which sells its products under the Harris and Tarkett Wood brands. The company, formerly called Harris-Tarkett, was founded in 1898 as the Harris Manufacturing Co.
“This acquisition is a natural add-on to our existing business. It is a key component of our strategy to move towards a full line supplier to the flooring industry,” said Jamie Clingan, Q.E.P.'s sr. vp sales and marketing. “Currently, under various brand names, we supply adhesives, underlayment, tools, installation accessories, chemicals and now are adding actual flooring to our mix. Our distributor community has expressed their enthusiasm and support in our decision to add flooring to our portfolio of products. We look forward to this new venture with our well-established customer partners as well as cultivating and growing new business relationships.”
ArborCraft produces a broad line of hardwood flooring, including engineered plank, prefinished solid and unfinished parquets, along with a complete line of moldings and accessories. The company employs close to 190 people in three facilities on about 67 acres in Johnson City, Tenn., and Montpelier, Ind. The facilities include more than 500,000 sq. ft. of manufacturing and drying space and a 192,000 sq. ft. lumber yard.
ArborCraft had 2009 net sales of approximately $27.8 million, according to Q.E.P. The acquisition included approximately $6.2 million in cash, subject to a post-closing working capital adjustment, and the issuance of a subordinated term note of approximately $3.8 million, which consideration is substantially equivalent to the fair value of the net assets acquired, Q.E.P. said. The term note matures in May 2013, requires quarterly payments of principal of approximately $0.3 million, and bears interest at 6.75 percent per annum.
Q.E.P. buys ArborCraft for approximately $10 mil
February 15, 2010