Posted on

Engineered Floors poised to purchase Beaulieu Group

October 9/16, 2017: Volume 32, Issue 9

By Ken Ryan

 

Screen Shot 2017-10-17 at 9.27.53 AMDalton–Engineered Floors’ agreement to purchase substantially all operating assets of Beaulieu Group—a deal pending bankruptcy court approval—would make EF a dominant No. 3 player in the carpet segment, a billion-dollar player overall, trailing only industry titans Shaw and Mohawk.

If approved, which is expected, the deal could be consummated in November.

Back on Sept. 20, Engineered Floors and Beaulieu Group had agreed to terms in a letter of intent. (Beaulieu Canada, which is not a subsidiary of Beaulieu Group, is not part of this deal.) The companies have now concluded those negotiations and executed a definitive agreement.

Engineered Floors did not divulge many details of what its plans are post-acquisition, other than to say it intends to operate the assets going forward and continue to grow the residential and commercial businesses. “This will be good for both our business and the community,” said Bob Shaw, chairman and CEO, Engineered Floors.

When asked specifically if Engineered Floors would retain the Beaulieu brand, or whether it would bring back the Coronet name—as has been speculated—a company spokesman said there would be no comment beyond the initial press release.

Fast-track growth
Since Bob Shaw founded Engineered Floors in 2009, the company has quickly grown. Its 2016 sales were $659 million and it has a strong position in the multi-family builder market; it serves the residential sector through distribution under the Dream Weaver brand. In April 2016, Engineered Floors acquired J+J Flooring Group, a commercial carpet specialist with sales of approximately $140 million. Last summer the company launched its Pentz Main Street division.

Screen Shot 2017-10-17 at 9.28.02 AMSince its purchase J+J Flooring has operated as an independent division under Engineered Floors. There is speculation that Beaulieu could also be operated as its own entity under the Engineered Floors flag. James Lesslie, executive vice president of sales and marketing, came over from Beaulieu in 2009 when the company was started; he was chief operating officer at Beaulieu when he left. Beaulieu’s annual sales are estimated to be approximately $350 million. Combined with Engineered Floors, the entity would exceed $1 billion in 2016 sales.

Since founding Engineered Floors, Shaw has created thousands of jobs in Whitfield County. Today the company employs 3,000, with more to be added as manufacturing facilities come online. One well-placed industry executive said Bob Shaw contacted Beaulieu to obtain a list of all the Beaulieu employees who had been laid off in the past six months. Engineered Floors did not comment on a question regarding Beaulieu employees.

Beaulieu filed for Chapter 11 bankruptcy on July 17. At the time, the company believed the process of reorganization would position it for future success. “Beaulieu family members and our board of managers believe pursuing a restructuring through Chapter 11 is the best path forward at this time,” Michael Pollard, president of Beaulieu Group, said at the time. “We have evaluated alternatives to address Beaulieu’s capital structure, and we believe restructuring through the Chapter 11 process will best position all of Beaulieu Group LLC’s businesses for future success.”

Founded in 1978, Beaulieu America, which until recently was the No. 3 carpet mill, employs upwards of 2,500 associates in more than 12 facilities and offices across North America. In addition to the Beaulieu brand, the company manufactures medium-priced commercial carpet under the Cambridge label, high-end specified carpet under the Bolyü label, and needlepunch floor covering products sold through Murray Fabrics and the company’s surfaces divisions.

Posted on

Engineered Floors reaches a letter of intent to purchase Beaulieu assets

engineeredfloorsDalton, Ga.– Engineered Floors has reached a letter of intent agreement in principle to purchase substantially all of the operating assets of Beaulieu Group. The transaction will be contingent upon approvals through the bankruptcy court and due diligence processes. Pending governmental approvals, the transaction is expected to close in the fourth quarter of 2017.

Note: Beaulieu Canada is not a subsidiary of Beaulieu Group and is not affected nor part of the letter of intent agreement.

Posted on

A.J. Rose Carpets & Flooring purchases Williston Weaves

Screen Shot 2017-05-18 at 4.31.14 PMSaugus, Mass.—A.J. Rose Carpets & Flooring recently purchased the Williston Weaves brand. Williston Weaves, located in Newton Upper Falls, Mass., was founded in 1992 and has become a leader in the interior design flooring industry for its selection, quality and service exclusive to the trade.

“We couldn’t be more excited about adding this design facet to our flooring family,” said A.J. Boyajian, co-owner, A.J. Rose. “Being able to back an exclusive-to-trade-professionals-only showroom rounds out our ability to offer our great selection and volume pricing to all our clients.”

Williston Weaves’ previous owner Susan Karofsky will stay to assist with the transition and was instrumental in the hiring of new sales manager Melanie Ezickson.

Ezickson is an experienced sales associate and showroom manager with a long track record of building relationships with interior designers and architects. She began her career in the fashion industry, but transitioned into the design field nearly 15 years ago. Ezickson has worked in showrooms and side-by-side with designers to create living spaces for a discerning clientele. She is excited to continue Williston Weaves’ tradition of exemplary customer service and looks forward to nurturing existing relationships as well as creating new relationships with Williston Weaves’ valued clientele.

A.J. Rose Carpets & Flooring was founded in 1977 and is a family-run business. The company currently has three locations in Burlington, Natick and Saugus, Mass. Williston Weaves is its fourth location.