DALTON— Amorim, the largest producer of cork products in the world, has acquired a 25% stake in USFloors based here. The deal was finalized Dec. 31.

Piet Dossche, CEO of USFloors, said the company, which recently opened a 100,000-square-foot cork and bamboo manufacturing facility here ( FCNews, Oct. 27/Nov. 3, 2008), said it could not have “wished for a stronger partner than Amorim to help us build on our leadership position in the U.S. cork flooring segment and expand the cork category aggressively in the marketplace.”

The 25% investment, which according to one published report was for $10 million, allows USFloors “to secure a partner that can give us the guaranteed supply of the cork raw material as well as finished products, help us with the technological know-how in the manufacturing of cork flooring in our brand new plant and strengthen our position in the U.S. market even further by making us a fully vertically integrated cork manufacturer,” Dossche added.

For its part, Amorim stated it becomes a partner with the leading cork distribution and manufacturing company in the U.S. and has the opportunity to grow market share and expand the overall sales of its cork and cork-related products in America.

Dossche told FCNews the rationale behind the investment was based on the perfect fit between the two companies. “Both Amorim and USFloors are market leaders in the cork flooring business and fully committed to the growth of the category. Combining the strength of raw material supply, manufacturing capabilities both in Portugal and America, and the USFloors sales and distribution network creates the perfect team to accelerate this growth. Both companies have the strategy to be the dominant player of environmentally responsible and sustainable flooring products in their respective markets, and with this strategic partnership will contribute greatly to each other to achieve this goal.”

From an operational standpoint, he said nothing is changing in the day-today structure at USFloors. “The current management team will continue to define and execute the direction and strategy of the company. We sold only a minority equity position and, as such, we keep full control of the company. Dossche added Amorim will not have any representation on the board, “but obviously, as a partner in the company, it will be kept fully informed on the strategy and performance of the company.”

The companies are no strangers to each other. During the second half of 2008, USFloors started distributing and selling the Montado cork collection from Amorim, in the CCA Global network. Under the new relationship this may be expanded.

“Amorim has a wide portfolio of products it currently sells in Europe and the rest of the world and are constantly developing new items for these markets,” Dossche explained. “We will evaluate what products could be suitable and exciting for our U.S. customers and distribution channels and market them under our USFloors brands.”

Amorim is technically Amorim Revestimentos, a wholly owned subsidiary of Corticeira Amorim, a public company listed on the Portuguese stock market. Amorim owns the Wicanders Group, which produces cork flooring from post-industrial cork.

In addition to USFloors, products are sold under the Natural Cork, Natural Bamboo and Natural Lino Corkoleum brands.

“This is clearly a win-win situation for both companies,” Dossche said, “and will create a formidable force for innovation and expansion of cork flooring in the U.S. Furthermore, the strengthening of our leadership position in cork flooring will boost our overall position and image of the rest of our product categories and clearly re-affirm our place as the leading U.S. company in cork, bamboo and sustainable flooring.”

Despite the very difficult economic environment, he concluded, “I am extremely upbeat and bullish for 2009 thanks to the combination of this new partnership with Amorim, the capabilities and strength of our new manufacturing plant in Dalton, the continuous strong interest and growth of the green flooring category and the fantastic team of people I can count on, to drive our business forward, both inside our company and in the field.”

For more on the USFloors, call 800.404.2675.