Hilco investment Kraus to sell flooring distribution unit to QEP

QEP has agreed to acquire the hard surface and carpet tile distribution business of Canada’s Kraus Group of Cos, according to a news release.

Terms weren’t disclosed.

QEP, a Boca, Raton, Florida, flooring and industrial solutions provider, said Kraus is seeking approval for the deal under the Companies Creditor’s Arrangement Act in Canada and the U.S. Bankruptcy Court.

The transaction is expected to be completed next month.

Established in 1959 as a family business, Kraus makes and distributes a range of hard surface flooring, carpet tiles and related accessories in North America. The company is headquartered in Waterloo, Ontario.

Kraus has been backed since 2012 by Hilco Capital, a U.K. private equity firm that specializes in restructurings and turnarounds. Hilco acquired $130 million of Kraus debt and security from a syndicate of secured lenders.

Hilco, which held the company under its investment platform Re:Capital Canada, no longer lists Kraus among its current investments.

Two months ago, Hilco exited another Canadian portfolio company.

It sold Tilley Endurables, a Toronto hat and apparel designer and maker, to Gibraltar & Co, a Canadian investment firm. Hilco acquired Tilley in 2015.