Q.E.P Co. Inc. (Boca Raton, Fla.) announced it will purchase certain assets of Kraus Group, a North American flooring distributor.
The acquisition is slated to be finalized in early October, after which Kraus will operate as a business unit of Q.E.P., which will take over Kraus’ hard surface and carpet tile distribution business.
Kraus Group, which is based in Waterloo, Ontario, was granted protection from its creditors under the Companies’ Creditors Agreement Act Sept. 11; the company also announced that its broadloom manufacturing operations in Waterloo will cease operations, affecting 256 employees.
“In recent years, the flooring industry has seen significant changes,” said Kraus President and CEO Shawn Davies in a statement. “We tried our very best to find a solution and looked at all options available, including a possible buyer for the whole business, but all those operations have now been exhausted.”
The purchase agreement with Q.E.P will “ensure the Kraus brand can continue forward in the marketplace,” Davies added.
Kraus’ hard surface and carpet tile distribution business will continue to operate from its main office in Waterloo and will maintain distribution locations throughout North America.