Lemont, IL, Feb. 13--WG McMahon Inc., a subsidiary of Kraus Carpet Mills, has acquired a majority interest in Royal Scot Floorcovering Distribution. The two full-line floorcovering distributors, neighbors across the USA-Canada border, will form an operating alliance and work to integrate their logistical and support systems. The two will continue to function as separate units with different but overlapping product lines. Existing management will remain in place at both distributors.
"This move represents a vote of confidence in full service distribution," commented Laddie Targosz, president of Royal Scot. "Initially, our customers will benefit from faster logistics and deeper inventories. Over time, we'll benefit from the financial strength of being part of a larger group."
"In addition to distribution divisions across Canada, our corporate group includes full line flooring distribution units in the US northwest and northeast," explained Gary Witt, chief operating officer of Kraus. "Royal Scot fits in between, continuing a successful mode of expansion."
"We don't intend to realign the distribution of any of our commercial carpet brands," said Frank Guthier, chairman and CEO of Kraus Carpet Mills. "Our objective is to increase our penetration of the American markets that are closest to our home base. Most of Royal Scot's customers are located within 500 miles of the Canadian border."
