Leading carpet maker Shaw Industries Group Inc. is looking to expand its reach in the wood-plastic composite (WPC) flooring market with a planned purchase of USFloors Inc.
The Dalton, Ga.-based company said in a news release that it had entered into a definitive agreement to buy USFloors. The transaction is expected to close in the fourth quarter.
“Our companies share similar values, and focus on innovation, style and design and sustainability leadership. Combining the fastest growing company in the fastest growing segment of the flooring business with Shaw's LVT [luxury vinyl tile] position creates a significant opportunity for the combined companies,” said Vance Bell, Chairman and CEO of Shaw, in a statement.
USFloors, which is also based in Dalton, is a maker of WPC backed flooring as well as cork, bamboo and hardwood products.
WPC floor backings are part of a $15 million market, according to the Freedonia Group's Wood Plastics Composites and Plastics study written by analyst Matt Zielenski. However, it is rapidly expanding, and the prediction is that it will be $38 million market by 2020 and $57 million by 2025.
In the report, it said that USFloors first introduced WPC-backed LVT tiles to the U.S. market in 2013 as a way to improve durability without sacrificing comfort. Several firms licensed the technology. Others led by the Shaw floors subsidiary developed a cellular PVC material as an LVT backing. It said demand for both backings is increasing.
Piet Dossche founded USFloors in 2001 and the company markets its products under the COREtec, Natural Cork, Natural Bamboo, Navarre, Castle Combe Floor and Wall brands. It has manufacturing and corporate offices in Dalton, with distribution facilities in Dalton and Augusta, Ga., and Anaheim, Calif. USFloors also has a presence in Shanghai and a sales and marketing office in Belgium.
Shaw Industries is a Berkshire Hathaway Inc. company and offers a diverse portfolio of carpet, hardwood, laminate, tile and stone flooring products. It also has synthetic turf and other specialty products. The worldwide company has over 20,000 employees.