Kraus Carpets Announces strong first half results and $50 million refinancing with Wells Fargo

WATERLOO, ON, Aug. 9, 2013 /PRNewswire/ - The Kraus Group of Companies (Kraus) is pleased to announce it has secured a $50 million funding line with Wells Fargo Capital Finance, part of Wells Fargo & Company, (NYSE: WFC), this comes on the back of a strong first half performance that has shown carpet sales up 2%, and a return to profitability during first six months of 2013.

During the first six months of 2013 the Kraus Group launched 27 new carpet styles, with a further 11 ranges of hard surface product being launched in the second half of 2013. This represents a complete refresh of the Kraus's range, representing a doubling of the usual levels of new product launches. Early indications suggest these ranges have resonated well with the consumer, with the vast majority of them performing ahead of forecast.

During July Kraus was awarded their largest single carpet order since they were awarded the contract to provide the carpet for the Calgary Winter Olympics in 1986.

Steve Malinowski, CEO, commented "my first six months at Kraus have been tremendous, it has been great to get out into the field and meet our employees and our customers, and it is clear there is a real desire for Kraus to succeed. With our improved ranges, customer service and inventories our performance to date is just the tip of the iceberg, I am confident that the second half of 2013 will surpass expectations".

Paul McGowan, Chairman of Kraus and CEO of Re:Capital Canada commented "After a year under new ownership it is clear that Kraus is really turning a corner, this is a result of a lot of hard work by our employees and our suppliers, along with the on-going support of our customers. We are very pleased with the success to date of Kraus".

About Kraus:

The Kraus Group is one of the largest integrated carpet and flooring manufacturers and distributors in North America with facilities throughout Canada, USA and Australia. Established in 1959, the Group has grown from a sole manufacturing facility to a multinational distributor servicing approximately 10,000 Retailers in both the residential and commercial flooring markets.

About Re:Capital Canada

Re:Capital Canada, is a wholly owned subsidiary of Hilco Capital based in the UK and is Canada's preeminent investor in stressed and distressed situations. Re:Capital acquired Kraus in June 2012. Re:Capital's other Canadian investments include HMV Canada and Denby Pottery.

SOURCE Kraus Group of Companies