Article Number : 3480 |
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| Date | 7/23/2008 8:39:41 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=3480 |
| Abstract | By Matthew Spieler DALTON—With sales of solid hardwood floors still accounting for more than half the category’s revenues, Shaw Industries announced it has acquired Zickgraf Hardwood Flooring Co., thus giving it a direct portal into the segment. Terms of the sale were not disclosed... |
| Article | By Matthew Spieler DALTON—With sales of solid hardwood floors still accounting for more than half the category’s revenues, Shaw Industries announced it has acquired Zickgraf Hardwood Flooring Co., thus giving it a direct portal into the segment. Terms of the sale were not disclosed. With manufacturing operations in Franklin and Bryson City, N.C., FCNews estimates the 75-year-old Zickgraf has annual sales of approximately $45 million. With an average of 320 employees on its 50-acre Franklin campus, the company is the community’s largest employer. The move was not a big surprise within the industry. Shaw not only sources some of its current solid wood offerings from Zickgraf, in December it jumped in to fill voids in the Mid-Atlantic and Midwest portion of the wood mill’s distribution network as a result of the Hoboken demise including its Superior Products subsidiary (FCNews, Dec. 24/31). Scott Sandlin, vice president of Shaw’s hard surfaces division, said similar to the company’s purchase of Anderson Hardwood Floors, Zickgraf will operate as a wholly owned subsidiary. “Zickgraf has excellent capabilities in solid wood manufacturing and allows Shaw to continue rounding out our product portfolio in the hardwood category,” noted Vance Bell, Shaw’s CEO. “With our innovative Epic product line, the multidimensional capability of Anderson and now solid wood manufacturing, Shaw has one of the most comprehensive product offerings in the wood industry.” Sandlin added one of the keys for Shaw making the acquisition is, “Zickgraf has all the elements to compete in solid. One of the most impressive things is the state-of-the-art finishing facility in Bryson City. Zickgraf’s sorting and finishing processes rank up there with the best— they’re very impressive—and one of the reasons why we were attracted to it. Some equipment can be upgraded, but for us it’s mainly adding capacity and shifts. It won’t be an overnight fix but ultimately Zickgraf will be able to give better service and reliability to its customers.” Drew Hash, Zickgraf’s president, who along with all but one of the company’s employees and executives, is staying with the company, said, “The combined strengths of Zickgraf and Shaw will allow us to continue exceeding the expectations of our valued customers for many years to come.” The one person not remaining is F.P. Bodenheimer Jr., chairman and CEO, who purchased the company in 1991 from the Zickgraf family. He noted, “The communities of Franklin and Bryson City will have the benefits of a financially strong company and a corporate leader in the industry.” Sandlin explained the decision not to remain with the company was Bodenheimer’s. “It was his choice. He wanted to just be sure that his company and his people were in good hands, and I think he has done that. The remainder of their team is ready to go to work, and we have already begun planning the future. We are excited about the talent and experience of its people. It is one of the primary reasons they are now owned by Shaw.” Having Zickgraf on board, he added, will allow Shaw to combine its massive R&D resources, especially in the area of style and design, with Zickgraf’s manufacturing capabilities. “We feel there is a huge void in the solid segment when it comes to a design perspective. We want to do similar to what Anderson has done— put the focus on style and fashion and not just on strips and planks. There is a tremendous opportunity to tie this with our other operations and be a style leader in this area. We are not content to just stay in Dalton and pretend we know all about wood.” He pointed out the opportunities for solid are still tremendous even though engineered wood products have been gaining market share each year. “Solid is still a very huge market. The potential here is really exciting for us. We will have an intense focus on style and design.” This focus on style and fashion, Sandlin pointed out, will not just be limited to Shaw. While Shaw will continue to source product from Zickgraf for its Shaw wood lines, the company will also continue to distribute Zickgraf-branded products as it has been doing as well as work with the mill’s other distributors. “They have some really great customers,” he noted, “and we look forward to growing our business with them and continuing that relationship much like we have done with Anderson.” With the purchase just happening, Sandlin said the companies are “mapping out the future of the capacity. We are in a unique position to be able to service customers in every channel, and I can ensure we will stay focused on all channels and not leave anyone out that wants to buy from a leader in the solid business.” Shortly after making the announcement, Sandlin, along with Hash, traveled around the country to visit with Zickgraf’s distributors to make sure they understand how much Shaw wants to work with them. “They’ve been very receptive,” Sandlin noted. “Understandably, there has been some questions on our commitment to keeping the distribution network. But I’ve told them to look no further than how we have handled the Anderson acquisition. The fact that that we have a track record in this area helped set them at ease that we will remain committed to them.” He added, when it comes to how the company distributes its products, distributors and retailers need to think of Shaw in terms of two companies—soft surface and hard surface. “This is not about distributing Shaw carpet. How we distribute Shaw hardwood, laminate and tile are completely different decisions.” Overall, Sandlin said the distributor tour allowed both sides to get to know each other better. “Everyone came out feeling good. The most pleasant thing has been how fond they are of Zickgraf and its people. “We always knew Zickgraf was a very good solid manufacturer because of its people,” he concluded, “and the distributors confirmed those feelings.” The Zickgraf Hardwood Co. was originally founded as a sawmill in 1933 by W.C. Zickgraf in Franklin, N.C., with 18 employees. His son, Grant, became owner and president of Zickgraf in 1953. He built the first of what was to become 16 dry kilns. This addition made it possible to include hardwood flooring and paneling, and Zickgraf directed its focus to manufacturing hardwood flooring and solid-wood paneling Approaching his retirement, Zickgraf sold the company to Bodenheimer in 1991. During his tenure, Zickgraf has focused on increasing sales and building strong national and international distribution channels since the mid ’90s. Over the past decade manufacturing operations have greatly expanded and advanced technology equipment has been incorporated into the manufacturing process. The prefinished facility was built in Bryson City in 2000 to support production of prefinished hardwood flooring. Today, Zickgraf offers 45 colors and styles in a number of branded and unfinished collections, including a line of prefinished exotics, as well as a complete set of trims and moldings. |