R E P A P S W E N floorcoveringnews volume 31/number 3 I www.floorcoveringnews.net I the industry’s preferred publication I July 18/25, 2016 I $2.00 THE 30TH ANNIVERSARY ISSUE Getting better with age 14 I July 18/25, 2016 fcnews 30 (x2) acquisitions & mergers YEAR COMPANY DIVISION ACQUISITION/MERGER 1986 Burlington Masland Carpet Formation of largest carpet mill with $651 million in annual sales. 1987 Shaw Industries West Point Pepperell Began wave of purchasing activity; consolidated the industry; created first billion-dollar mill; carpet and rug division gave Shaw Cabin Crafts and Stratton brands. 1988 Beaulieu of America Conquest Carpet Mills Enabled company to get into the polypropylene business in a big way through downstream integration. Armstrong American Olean Expanded ceramic tile business. 1989 Shaw Industries Armstrong’s carpet division Gained Evans & Black brand; added 5% market share, resulting in 20% stake in soft surface, 3 times the size of nearest competitor. 1990 Beaulieu of America Coronet Carpets Largest acquisition in the carpet business to date; gave company Canadian presence. Domco Azrock Domco expanded distributor network in U.S.; Azrock increased international presence. Queen Carpet Patcraft Mills Put mill squarely into the commercial market. 1992 Shaw Industries Salem Carpet Mills Boosted Shaw’s domestic carpet share to approximately 31%. Congoleum Amtico Synergies via merger included joint promotion of both lines and sharing of showroom space. Royalty Carpet Mills PacifiCrest Mills Put Royalty in the design/specification market. 1993 Mohawk Horizon Industries Became eighth-largest mill with $630 million in sales. Mohawk Fieldcrest Cannon Acquired Karastan and Bigelow brands; positioned company as second largest mill with sales of more than $830 million. Dixie Group Carriage Industries Acquired industry’s largest supplier to the manufactured housing business. Dixie Group Masland Carpets Added $50 million in sales; gave company foothold in higher-end residential business. Interface Prince Street, Bentley Mills Enhanced leading position in commercial arena; diversified product mix. Mohawk Aladdin Mills Highest amount—$450 million—paid for carpet mill; merger gives Lorberbaum family 42% of Mohawk’s outstanding common stock 1994 Domco Nafco $97 million purchase bolstered luxury vinyl tile portfolio. Queen Carpet Tuftex Purchase of $14 million California mill boosted Queen’s annual sales to $565 million. Western FCA AFA Formed World Floor Covering Association, brought Chris Davis into the industry. 1995 Mohawk Galaxy Carpet Mills $200 million purchase enhanced position at mid-level price points. Dal-Tile American Olean Merger brought together largest tile manufacturers in U.S., creating estimated capacity of nearly 450 million square feet. 1996 Mohawk Diamond Rug & Carpet $60 million transaction added lower-priced residential carpet to the mix. Tarkett Domco Merger created second-largest hard surface manufacturer in North America with $500 million in sales. 1998 Mohawk World Carpets Acquisition of $430 million company put Mohawk at $2.5 billion in sales. Mohawk Image Industries Put company in recycled polyester fiber business, turning plastic bottles into yarn used to manufacture carpet. Shaw Industries Queen Carpet Added $800 million in sales and four brands to its portfolio: Queen, Tuftex, Patcraft and Designweave. Armstrong Triangle Pacific Diversified Armstrong’s product portfolio; became No. 1 hardwood flooring producer, adding well-recognized Bruce brand. Armstrong DLW Regained position of world’s top resilient flooring producer with acquisition of German linoleum tile and sheet company. Beaulieu of America Columbus Mills Added credibility to Beaulieu Commercial within the A&D community; eventually folded into Coronet. Beaulieu of America Marglen Industries Gave company entrée into the recycled polyester carpet business. Beaulieu of America Peerless Carpet Gave company a dominant position in the Canadian carpet market. Dixie Group Multitex Corp. Globaltex division had major presence in the big boxes; added $85 million in sales. 1999 Collins & Aikman Monterey, Crossley Combination of three carpet mills resulted in eventual formation of Tandus, one of the leading commercial manufacturers. 2000 Hanley-Wood Surfaces World Floor Covering Association secures its financial future via $40 million sale, plus 25-year annual annuity. Berkshire Hathaway Shaw Industries Allowed Shaw to focus on long-term goals rather than month-to-month. Beaulieu LDBrinkman Purchase of industry’s largest distributor put mill in the hard surface business. Dixie Group Fabrica Enhanced position at the upper end of the market. Mohawk Durkan Patterned Carpets Purchase of $110 million company put it squarely in the hospitality sector. Carpet Co-op of America Flooring America Company is renamed CCA Global Partners; became dominant retail group with roughly 2,000 stores under its umbrella. 2001 Mohawk Dal-Tile Vaulted to the top spot among U.S. flooring manufacturers after $1.63 billion purchase. 2003 Mohawk Lees Carpet Acquisition of $250 million commercial broadloom and tile mill broadened contract business. 2005 Mohawk Unilin Company gains domestic manufacturing via new, state-of-the-art facility in North Carolina as well as licensing rights to Uniclic locking system and Quick•Step brand. Shaw Industries Synthetic Industries Purchase of backing manufacturer continued push to be 100% vertically integrated and having total control of its own products. Shaw Industries Honeywell’s fiber division Gained Anso and Zeftron brands; acquired 50% stake in Evergreen Nylon Recycling facility (eventually acquiring full ownership). 2006 Mohawk Propex Purchase of secondary backing plant, coupled with 2005 purchase of Wayn-Tex, fulfills most product mix requirements. Tarkett Johnsonite Gained more commercial market leverage as well as access to Johnsonite’s extensive product portfolio, including rubber flooring. 2007 Shaw Industries Anderson Hardwood Floors Positioned Shaw among top three hardwood suppliers, gaining a line with hallmarks of innovation, styling and quality. Mohawk Columbia Acquisition of key supplier, which included four plants, enabled company to manufacture wood rather than just market and sell it. 2009 Mohawk Wear-Dated Gained one of top three consumer fiber brands, which carries 63% aided recall awareness among target audience. 2011 DreamWeaver Catalina Alliance combines brand recognition of Catalina’s Stainmaster products with value inherent in Dream Weaver’s PET. 2012 Mannington Amtico Acquisition expands Mannington’s global market reach as well as the scope of its domestic manufacturing capabilities. Tarkett Tandus Purchase puts Tarkett into the commercial carpet business in North America and Asia Pacific. Mohawk Pergo Largest flooring manufacturer adds most recognized laminate flooring brand in U.S. and Europe to its portfolio for $150 million. 2013 Mohawk Marazzi $1.5 billion acquisition gives Mohawk total annual tile revenues of $2.75 billion, making it the world leader in the category. 2014 Haines CMH Space Purchase gives flooring’s No. 1 distributor annual sales of more than $500 million. All Tile Carpet Cushion & Supplies Acquisition vaults All-Tile to fourth-largest distributor with combined sales of $150 million; allows distributor to provide for below the floor. Dixie Group Atlas Adds high-end manufacturer to commercial carpet portfolio that includes Masland Contract. 2015 Mohawk IVC $1.9 billion purchase of fastest growing manufacturer of LVT in Europe positions Mohawk to meet rapidly growing U.S. market. Lexmark Northwest Carpets Strengthens Lexmark’s position in the hospitality market. 30 I July 18/25, 2016 fcnews January Mannington Mills acquires the stories Linwood Manufacturing 1986 Co., putting it into the hardwood flooring and veneering product businesses. The new division will operate under the Mannington Wood February Floors moniker. Felt-backed vinyl flooring How Stainmaster became and vinyl asbestos floor After Joe Maffett tile are among several resigns as president of products that will be the industry’s No. 1 brand World Carpets, John affected by the EPA’s plan Shaheen is named to to phase out asbestos. succeed him. By Tom McAndrews, former president, DuPont Flooring Division rolling all across America on the Congoleum and Tarkett same day in early September. As celebrate their 100-year anniversaries. here is the story of out the U.S. The group included the trucks were cruising, a press Stainmaster, a story that consultants with experience conference in New York’s Pierre Tencompasses the vision, from P&G and BBDO. They had Hotel gave the flooring media a the energy and the courage that spent their year studying every confidential preview, followed April propelled those who took mas- facet of marketing, advertising, days later by a similar presenta- Robert Van sive risks to make it more than a promotion (both retail and tion to all of America’s leading Buren is technical improvement in the national) and quality assurance. TV programs and networks named performance of carpet. It is the They had studied many product (“The Today Show,” “Good president and story of how the name came to features, most “feeding” off the Morning America,” CNN, etc.) CEO of Azrock. be—a $10,000 “blind” purchase and America’s leading newspa- The first NWFA from a Philadelphia attorney; of pers (New York Times, Wall Street convention attracts the men and women who saw Journal, AP, etc.) and magazines. 170 attendees. May the