Kraus Group Sold to Canadian Investment Firm

Waterloo, Ontario, Canada, May 29, 2012 -- A majority stake in carpet and flooring manufacturer Kraus Group has been sold to investment firm Hilco Canada, according to The Record.com.

The Kraus Group said in a press release that it has reached agreement for the sale of a majority stake to Hilco Canada, a subsidiary of British restructuring specialist Hilco UK.

The firm also said it has secured new funding lines from a commercial lender based in the U.S.

The financing process includes a commitment to the restructuring of Kraus’s Canadian operations, which will enable the business to significantly reduce its overall debt burden, the release said.

Last year, Hilco UK purchased retailer HMV Canada. Hilco UK also owns Home Flooring Solutions Limited, which fulfills flooring claims for British insurance groups.

The Kraus Group grew out of Kraus Carpet Mills, founded more than 50 years ago by Michael Kraus. The company has 10 manufacturing and distribution locations in Canada, the U.S. and Australia.