Dalton— 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.

FCNews’ research estimates the companies’ 2006 combined wood sales at over $205 million—an approximate 11% market share in the $2.265 billion hardwood flooring category.

The deal incorporates all Anderson assets, including multiple manufacturing operations, a newly built Design Center and headquarters in Fountain Head, S.C., and its family of brands—Anderson, Virginia Vintage, Appalachian, Biltmore Estate and Anderson Pacific. In addition, Anderson’s management team will maintain their positions with the 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 said, “I’m very excited about the potential of what Shaw and Berkshire Hathaway (Shaw’s parent company) bring to the table. They have a lot of useful 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 under the company’s Hard Surfaces division. There are currently no plans for Shaw and Anderson to share products, but it is something that may be looked at “down the road.”

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

Today, Anderson manufacturers solid and engineered flooring products in over 40 wood species and numerous surface textures that continue being 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. It has a lot to do with Shaw and Berkshire. Their reputation shows that they buy successful companies and help them become more successful.”