Bauwerk Group (Boen) Acquires Somerset Hardwood
St. Margrethen, Switzerland, May 2, 2022-Swizerland-based Bauwerk Group AG has announced the acquisition of Somerset Hardwood Flooring, a vertically integrated forest products company based in Somerset, Kentucky, effective May 1.
With the acquisition, Bauwerk Group AG strengthens its global profile and gains a stronger foothold in the growing North American flooring markets. The transaction is characterized by the strongly complementary nature of the two companies. Somerset Hardwood Flooring has an established brand and market position in the U.S. with a strong presence in the relevant sales channels. Known for its solid hardwood flooring, Somerset Hardwood Flooring will be able to benefit from Bauwerk Group's expertise in multilayer engineered hardwood flooring. The companies will also benefit from a joint specialization on hardwood flooring, their shared DNA in production and a mutual focus on quality products. The combined company 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. 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," states Patrick Hardy, CEO and president of Bauwerk Group. "We are pleased to be able to continue the success story of Somerset Hardwood Flooring and the legacy of founder Steve Merrick."
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 can rely on the proven management team at Somerset Hardwood Flooring, led by long-time Somerset Hardwood Flooring VP sales & marketing Paul Stringer as the new CEO/president.
Merrick will continue to own and operate his other forest products businesses in the community, including Somerset Hardwood Lumber (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.
The parties agreed not to disclose financial details of the transaction.
Bauwerk Group, headquartered in St. Margrethen, Switzerland is one of leading companies in the European Parquet industry with a turnover of around CHF 300 million and approximately 1,600 employees. The group owns the brands of Bauwerk Parkett and Boen and has production sites in Switzerland, Lithuania, and Croatia. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as legal counsel to Bauwerk Group.
Somerset Hardwood Flooring was founded in 1990 by Steve Merrick and is the fourth largest hardwood player in the U.S. with estimated sales of $163 million. Production takes place at the main plant in Somerset, Kentucky, and the manufacturing facility in Crossville, Tennessee with nationwide distribution through the leading distributors in the U.S.