Article Number : 1616 |
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| Date | 12/28/2006 11:22:37 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1616 |
| Abstract | By Louis Iannaco Chicago—Tarkett and Kraus Carpet Mills have entered into a joint venture whereby the suppliers will merge their respective sales, customer service and logistics operations in the Midwest. The new company, Kraus Floors LLC, will be headquartered here... |
| Article | By Louis Iannaco Chicago—Tarkett and Kraus Carpet Mills have entered into a joint venture whereby the suppliers will merge their respective sales, customer service and logistics operations in the Midwest. The new company, Kraus Floors LLC, will be headquartered here. The 50/50 venture will integrate Minneapolis-based McKee Floor Covering, a Tarkett subsidiary and distributor of flooring products, with Kraus Royal Scot’s strong infrastructure in Chicago to create a sales and service powerhouse, noted both companies. Kraus will continue to operate its regional warehouses in Minneapolis; Chicago; Fargo, N.D. and Omaha, Neb. Under the terms of the merger, Kraus Floors LLC will market everything that was formerly marketed by McKee and Kraus Royal Scot, including the full range of Kraus residential carpet, all Tarkett-branded residential flooring (vinyl, laminate and hardwood) and the @work Carpet for Business line of commercial carpets by Kraus. “We’re thrilled about this partnership and confident this new association with Kraus Carpet Mills will build an efficient distribution platform to cover these key markets,” said Guillaume Laverdure, North American president for Tarkett Residential. “Combining our sales, service and logistics operations will enable us to build stronger relationships with Mid-west retailers.” Laverdure added that the merger will bring the financial and marketing strength of two leading manufacturers to bear as Tarkett enhances its retailer support programs. “We’ll develop a logistical system that delievers the best in-market service to our Midwest customers,” he said. “Tarkett has no interest in buying Kraus, and this venture was created as a result of Kraus Carpet and Tarkett having the same goal in the Midwest—namely, to get the right access to market and speed up growth in this key territory.” Gary Witt, CEO of the integrated carpet/fiber manufacturer and flooring distributor, noted that Kraus has distributed Tarkett product lines in the Northeast and Southeast for years and recently took on some of its lines in the Northwest. “However, this Midwest partnership goes beyond the traditional manufacturer and distributor business model,” he said. “We’re putting the financial and marketing strengths of two great manufacturers to work for our customers and equipping ourselves to offer better service, better value and better retail support programs to our Midwest retail customers.” Major business decisions will be made jointly by Kraus and Tarkett, noted Walter Eckhardt, senior vice president, marketing, Kraus. Laddie Targosz (until now, president of Kraus Royal Scot), will lead Kraus Floors LLC as executive vice president, reporting to Brad Vollrath, who will report to a board made up of Tarkett and Kraus representatives. Apart from heading Kraus Floors, Vollrath will retain his other executive responsibilities as head of the Kraus Distribution Group. No decisions have been made about any other management appointments. Synergies played a major role in the merger, Eckhardt explained. “Kraus and Tarkett complement one another in terms of the scope of what each of us manufactures. We make fiber and carpet; Tarkett makes vinyl (felt and fiber), laminate and hardwood. Kraus has had a great relationship with Tarkett for years, distributing many of its lines in various regions. In working together, we noticed in the Mid-west, Tarkett’s Minneapolis-based logistical/sales strength was very complementary to our Chicago-based regional sales/ logistical strength. “Our combined operation in the Midwest will reap scale economies for both manufacturers,” he said. “It’ll enable us to increase regional inventories, improve service speed and broaden the basis for our relationships with dealers. The breadth of our combined product offering will better equip us to enhance our dealer account programs.” Regarding any jobs that may be affected as a result of the venture, Eckhardt concluded, no employee staffing decisions have been made. “In the Midwest we’re merging our sales, logistics and service operations. In some other regions and product categories, Kraus is a Tarkett customer. In other regions and categories, we’re still competitors.” For more on Tarkett, call 450.293.8050; Kraus can be reached at 519.884.2314. |