Marquis acquires Lonesome Oak/Gulistan

Home Categories Carpet Marquis acquires Lonesome Oak/Gulistan

February 17/24, 2020: Volume 35, Issue 17 

By Ken Ryan

Chet Graham, president of Marquis, said the synergies between Marquis and Lonesome Oak/Gulistan were too good to pass up.

Marquis Industries has completed the acquisition of Lonesome Oak Trading Company and its storied Gulistan brand in a deal that also expands the Stainmaster PetProtect brand through the specialty retail channel.

The acquisition of Lonesome Oak is expected to increase Marquis Industries’ (Live Ventures is the holding company) revenue by approximately 50% in its manufacturing segment to roughly $140 million per year. “We believe Lonesome Oak will be a great bolt-on acquisition for Marquis Industries,” said Wes Godfrey, CEO of Marquis Industries. “Lonesome Oak and Marquis have complementary lines of business, which we believe will enable Marquis to grow and realize significant operating and cost synergies with the ultimate goal of sustainably increasing free cash flow.”

A significant piece to the acquisition is Gulistan, which has Stainmaster PetProtect (Marquis does not). Chet Graham, president of Marquis, said the company will continue with the Stainmaster brand and expand the product line offerings into all divisions. “This will open up some new retail channels for us,” he told FCNews.

Gulistan is a venerable brand that began manufacturing carpet in 1924 but closed its doors in Aberdeen, S.C., in 2012. However, Chad McIntyre, founder of Lonesome Oak Trading Company, acquired the Gulistan name and relaunched the brand at Surfaces in 2018.

Gulistan’s strategy had been to selectively choose its flooring dealer partners, offering higher profit margins on the strength of its extrusion capabilities that provide unique colors and yarn systems that are exclusive to Gulistan.

Flooring retailers say the deal will make Marquis a much stronger force as a mid-level mill. “Marquis gives Gulistan instant operating capital and an aggressive sales team on the streets, which should help them gain market share,” said Mike Foulk, owner of Foulk’s Flooring America, Meadville, Pa.

Olga Robertson, president of the FCA Network, Shorewood, Ill., said some of her members buy from Marquis. “Marquis makes pretty carpet, and the acquisition of Lonesome Oak/Gulistan gets them into Stainmaster nylon,” she said.

Graham said that while Marquis preferred to grow organically, the synergies between the two organizations were too good to pass up. He noted, however, that Marquis and Lonesome Oak/Gulistan will continue to market their brands separately to their respective dealer partners. “This is a very nice integration—the merger will be seamless,” he said. “Lonesome Oak runs a very streamlined organization, and we are absolutely a streamlined company. We see a lot of opportunities ahead for us. They have nice, updated tufting equipment such as LCL machines and graphic tufting lines. The addition of LCL styling and branded fiber will enable us to continue to grow in soft floor covering, and we will be able to improve on the hard surface side with our synergies as well.”

Both companies have a growing presence in WPC, SPC and rigid vinyl planks. Lonesome Oak, which was founded more than 25 years ago, entered the rigid core/SPC space in recent years. Marquis has been an LVT supplier longer and has been growing steadily, Graham said.

The Marquis deal is the latest in a series of acquisitions impacting the carpet market in recent years. This followed on the heels of Mannington’s purchase of Phenix Flooring, marking Mannington’s entry into the residential carpet space. Back in 2017, Engineered Floors purchased Beaulieu’s assets, catapulting EF to the No. 3 revenue position among carpet mills.

Must Read

TISE Live digital event open for registration

Las Vegas—The International Surface Event (TISE) is producing a virtual event over the previously scheduled in-person January event dates—Jan. 26-28, 2021—with an online product-focused...

October new home sales continue strong fall season

Washington, D.C.—Sales of newly built, single-family homes in October dipped 0.3% to 999,000 from an upwardly revised September number, according to newly released data...

Suburban Housing: Increased trend or permanent shift?

This article was originally featured by the National Association of Home Builders. Washington, D.C.—In the wake of the COVID-19 pandemic, certain patterns and trends have...

Mannington launches new Main Street product line

Calhoun, Ga.—Building on its longstanding success in the Main Street category, Mannington is launching a new, updated and refreshed product offering and re-branding of...

Congoleum exits voluntary reorganization proceedings

Trenton, N.J.—Congoleum, founded in 1886, announced it has successfully completed its restructuring process as a privately held company. Through this process, the company has...

AHF Products to expand engineered wood facility

Mountville, Pa.—AHF Products announced plans this month to invest $2.5 million and create 20 full-time jobs at its Somerset, Ky., facility early in 2021. Work on...
X