Forest, Va.—When PermerGrain Products filed for Chapter 11 bankruptcy protection late last year, it left many wondering who will fill the void, since it was one of the key manufacturers of acrylic impregnated wood flooring. That question was answered when Gammapar, the original manufacturer of acrylic impregnated wood flooring, announced it was purchasing PermerGrain’s assets. Jay Cooper, Gammapar’s vice president of sales and marketing, said the company is acquiring “just about everything that was owned by PermaGrain—from the physical to intellectual assets.” Three of PermaGrain’s product lines—Armstone, Finewood and Permetage—are not being purchased. As to their fate, “that will be up to the bankruptcy court to decide,” Cooper noted.

With this purchase, it leaves Gammapar and Armstrong World Industries as the two main suppliers of acrylic impregnated wood flooring. Gammapar plans to run PermaGrain as a separate entity, with its own sales force, employees and management staff. At press time, the company was still searching for someone to be president of the subsidiary. Cooper will float between the two divisions as vice president of sales and marketing. “Unfortunately, most of PermaGrain’s managers have successfully landed on their feet, which is no surprise given their experience,” he said. “Still, they have been very cooperative in helping us re-establish the company.” Cooper said Gammapar has already contacted PermaGrain’s sales staff and other agents, factory employees and distributors about returning to work under the PermaGrain brand. “They are one of the two main reasons we made this purchase,” Cooper said. “Their people are absolutely marvelous. The sales staff is the best in the business and a very valuable asset because of the tremendous trust they have developed over the years with clients, not to mention their overall knowledge of the market. “Plus,” he continued, “the people in the plants are second to none.

PermaGrain has always been noted as being an innovative company and much of that innovation was driven by the employees who made the products. They actually drove the innovation and we want to capitalize on that.” The second key to the purchase, said Barry Brubaker, Gammapar’s CEO, is, PermaGrain’s “reputation as a quality and innovative company with a high service standard. We want to build on that reputation and implement some exciting plans for revising and expanding its product line.” “There is a tremendous amount of potential,” Cooper added. “Much of that lies with bringing new and innovative products to market.” He said the first set of these will be floors featuring a veneer of either leather, cork or bamboo on the top surface protected by a heavy-duty vinyl wearlayer. “Later, we have plans for about a dozen high end veneers that will be unlike anything the industry has seen.”

While the addition of PermaGrain gives Gammapar a “significant increase” in sales volume, Cooper said the company’s initial plan is to maintain both divisions’ focuses on the commercial market and not branch into the residential segment. “Both Gammapar’s and Perma-Grain’s cores are with architects and designers, they understand it and have well established reputations. The residential market is an entirely different animal. Right now it is too price competitive and there needs to be a shakeout. We are most definitely keeping a close eye on that part of the market because it does account for the lion’s share. But, we feel there is still a great deal of potential in the commercial sector.” Some of PermaGrain’s products will be produced at Gammapar’s facility here. “Our intent is to have PermaGrain stay in Pennsylvania which is why we have been upgrading the equipment. The employees left everything in great working order. They are to be really commended for being so professional.”

One of the first things Gammapar wants to do is ensure clients the radiation problem PermaGrain had at one of its plants here is a non factor. “PermaGrain was not responsible,” Cooper said. He explained that PermaGrain had leased the property from the state of Pennsylvania. Prior to that, the facility was rented by a company that made special batteries for the U.S. military during the Cold War. In making the batteries, strontium-90 was used and that is what caused the contamination. PermaGrain, like Gammapar and other manufacturers, does use a low-level radioactive substance, cobalt-60, but this is not the material that caused the contamination. “Cobalt-60,” he said, “is very common. In fact, it can be found in dirt. “That issue is now behind PermaGrain,” he concluded. “We have gone through the necessary channels and secured that everything is OK. The plan is to begin taking orders in April and keep moving forward.” For more information about PermaGrain or Gammapar, call 800/283-5667.