By Matthew Spieler
Hicksville, N.Y.— Shaw Industries has signed a definitive agreement to acquire Anderson Hardwood Floors. While financial terms of the transaction are not being disclosed, the deal will jump Shaw into the top three in wood flooring along with Armstrong and Mohawk, which recently purchased Columbia Flooring ( FCNews, July 9/16).

The deal incorporates all of Anderson’s assets, including multiple manufacturing operations, its newly built Design Center and headquarters in Fountain Head, S.C., and the Anderson family of brands—Anderson, Virginia Vintage, Appalachian, Biltmore Estate and Anderson Pacific. In addition, Anderson’s management team agrees to remain with the 61 year-old wood company. This includes Don Finkell, president and CEO, and Jeff Sills, COO.

Vance Bell, Shaw’s CEO, told FCNews Anderson will be run as a stand-alone company with Finkell and Sills making the day-to-day decisions “just as they are now. One of the key reasons for buying Anderson is it has a longstanding reputation for product innovation, styling and premier quality, and we don’t want to alter its approach.”

During an exclusive interview with FCNews, Finkell echoed Bell and added, “They said to keep doing what you’ve been doing, and let us know what you need. They are not going to make wholesale changes.

“I’m very excited about the potential of what Shaw and Berkshire Hathaway (Shaw’s parent company) bring to the table,” he added. “They have a lot of resources—financial and relationships—and are also successful business people that I look forward to learning from and having our employees learn from.”

Bell said Shaw will continue to run its current wood business as is under the company’s Hard Surfaces division. This includes Shaw’s newly opened hardwood manufacturing facility, which makes the mill’s environmentally friendly Epic flooring. There are currently no plans for Shaw and Anderson to share products, but it is something that may be looked at “down the road.”

Speaking of the environment, Bell complimented Finkell on the company’s proactive stance against illegal logging and other eco-friendly initiatives, something Shaw feels very strongly about as witnessed by its Green Edge program. “Not only are they good stewards, but I’m sure we’ll share best practices with each other.”

Finkell noted not having the company in the Anderson family after 61 years does bring some sadness, “but the key criteria was that the business continue as Anderson. And that was a commitment Shaw made—to keep the Anderson name.”

The Anderson company dates back four generations to L.W. “Andy” Anderson, who founded the company. His son, Robert Anderson, joined the mill in 1950 and served as president until 1988, when his son-in-law, Finkell, took over.

Today, Anderson manufactures both solid and engineered products in over 40 wood species from around the world and numerous surface textures that are sold through independent distributors.

While Finkell has no doubt Anderson would have been able to remain a top player in the industry, “it just made sense to take advantage now. I don’t think there was a whole lot we couldn’t do before that we can do now. [This] will probably let us be a little more competitive, at least in terms of manufacturing.

“We never went out to anyone seeking an opportunity to sell the company,” Finkell added. “But every company has its strategic moment. It has a lot to do with Shaw and Berkshire Hathaway. Their reputation is they buy successful companies and help them become more successful. I did not want Anderson to go through a series of sales. If this was going to happen, I wanted it to happen only one time. And to the best of my knowledge, Berkshire has never sold a company.”

FCNews’ research has estimated the companies’ combined wood sales at over $205 million, giving it an approximate 11% market share in the $2.265 billion wood flooring category.

Despite a tough economic climate, Finkell feels the acquisition means the best is still to come. “We think our business will increase. The combined strengths of these two companies will allow us to continue exceeding our customers’ expectations for outstanding products and services for many years to come.”