BOCA RATON, Fla., Jan. 26, 2010 (GLOBE NEWSWIRE) -- Q.E.P. Co., Inc. (Pink Sheets:QEPC) (the "Company") today announced its agreement to acquire substantially all of the assets and assume certain liabilities of ArborCraft, LLC. The closing of the transaction is expected to occur during February 2010.
ArborCraft, formerly Harris-Tarkett, was founded in 1898 as The Harris Manufacturing Company and has evolved into a leading North American hardwood flooring manufacturer. ArborCraft produces a broad line of hardwood flooring including prefinished engineered plank, prefinished solid flooring and unfinished parquet along with related moldings and accessories. ArborCraft sells its products under the Tarkett®, Genesis and Harris® brands.
Mr. Lewis Gould, Chairman of the Company's Board of Directors, commented: "We expect the acquisition of ArborCraft to add considerable strategic value to the Company. This acquisition fits our overall strategy of leveraging all the Q.E.P. and Roberts products on a worldwide basis to become a 'single source' supplier. This will allow the Company to market underlayment, tools, adhesives, flooring, waxes, polishes, moldings and other products to become a 'one stop shop,' providing more value to our customers." Mr. Gould further commented, "This strategy will apply on a worldwide basis to Q.E.P.'s operations in Europe, Australia and South America. This is an exciting opportunity to build another platform for new domestic and international growth through the expansion of both our product line and our channels of distribution."
The acquisition is expected to be financed with an increase in the Company's existing credit facility with its long-term U.S. banking partner and with the issuance of a subordinated note to the seller.
ArborCraft employs approximately 190 people operating out of three facilities located in Johnson City, TN and Montpelier, IN. The primary facility located in Johnson City includes over 300,000 square feet of manufacturing and drying space in addition to a 192,000 square foot lumber yard on over 43 acres of an owned facility. The second Johnson City facility has over 100,000 square feet of additional drying and manufacturing space on four acres of an owned facility. The third facility, located in Montpelier where high-quality hardwoods are readily available, includes 100,000 square feet of leased manufacturing and drying space on approximately 20 acres where ArborCraft manufactures engineered wood panels for use in the final manufacturing and finishing processes that occur in Johnson City.
Q.E.P. Co., Inc., founded in 1979, is a leading worldwide manufacturer, marketer and distributor of a broad line of flooring tools and accessories for the home improvement market. Under brand names including QEP®, ROBERTS®, Smoothedge®, Vitrex®, PRCI®, Capitol® and Elastiment®, the Company markets over 3,000 specialty tools and flooring related products used primarily for surface preparation and installation of ceramic tile, carpet, wood and vinyl flooring. The Company sells its products to home improvement retail centers and specialty distribution outlets in 50 states and around the world.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the expected benefits resulting from the acquisition, our strategic plans and growth and cost management prospects following the consummation of that acquisition, and our ability to obtain financing for the acquisition. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Among the risks and uncertainties that could cause such a difference are: the risk that conditions to closing of the acquisition may not be satisfied, or that the closing may be delayed, the risk that we will not be able to execute on our strategic plan following the closing, assumptions relating to the success of improvements in our operations, the potential for growth in sales of our products, the cost of raw materials and finished goods, and other business and economic factors.