St. Margrethen, Switzerland—Swiss-based Bauwerk Group AG acquired Somerset Hardwood Flooring, a vertically integrated forest products company based in Somerset, Ky. With the acquisition, Bauwerk Group AG said it strengthens its global profile and gains a stronger foothold in the growing North American flooring markets.
Somerset Hardwood Flooring has an established brand and market position in the U.S. with a strong presence in the relevant sales channels. According to Bauwerk Group AG, the companies will benefit from a joint specialization on hardwood flooring, their shared DNA in production and a mutual focus on quality products. The combined company said it is establishing itself as the global market leader in quality hardwood flooring with a geographically well diversified turnover of over $400M at a production volume of over 120 million square feet.
“With Somerset Hardwood Flooring, we have found the ideal partner for Bauwerk Group AG’s U.S. expansion,” said Patrick Hardy, CEO and president of Bauwerk Group. “All the requirements we have set for an acquisition, such as good market positioning, own production and a fit in terms of values and people, apply to Somerset Hardwood Flooring. We are pleased to be able to continue the success story of Somerset Hardwood Flooring and the legacy of founder Steve Merrick.”
According to Steve Merrick, founder of Somerset Hardwood Flooring, both parties bring key success factors to the table, which will enable the next step for both companies. “Under the aegis of Bauwerk Group, Somerset Hardwood Flooring will be able to further play to and accentuate its strengths,” he said.
According to the company, the Somerset Hardwood Flooring brand will remain and complement the other brands in the Bauwerk Group portfolio (Bauwerk Parquet and Boen), with all three brands retaining their respective regional focuses and product identities. Bauwerk Group said it can rely on the proven management team at Somerset Hardwood Flooring, led by long-time Somerset Hardwood Flooring VP sales and marketing, Paul Stringer, as the new CEO/president.
Merrick said he will continue to own and operate his other forest products businesses in the community, including Somerset Hardwood Lumber, Inc., which will become Merrick Hardwoods, Inc., Somerset Biofuel, Inc. (d/b/a Somerset Pellet Fuel), Kentucky Hardwood Lumber Company, Inc., and Interstate Hardwoods, Inc. Additionally, the Merrick companies will continue to manufacture and market their unfinished solid wood flooring brand.