Q.E.P. Co., Inc. Completes Sale of Manufacturing Facility in Tennessee

Q.E.P. Co., Inc., a leading designer, manufacturer, and distributor of installation solutions, has successfully completed the sale of its manufacturing facility in Johnson City, Tennessee. The transaction, valued at $5.3 million, involved the transfer of the facility to Hatley Properties, LLC.

The manufacturing facility, spanning approximately 295,000 square feet and situated on 48 acres, was part of Q.E.P.’s wood flooring manufacturing operations. With this divestiture, Q.E.P. has finalized its exit from wood flooring manufacturing, aligning with its strategic plan to focus on expanding its core brands of flooring-related tools, adhesives, underlayment, and accessory products.

As part of the agreement, Hatley Properties has granted Q.E.P. the opportunity to remain at the facility until November 2023 to facilitate an orderly exit, including the relocation of its grouting sponge production operations to its manufacturing facility in Dalton, Georgia.

Len Gould, President & CEO, The Americas, of Q.E.P., expressed his satisfaction with the transaction, stating, “This transaction completes Q.E.P.’s exit from wood flooring manufacturing. The divestiture of these assets is another step in Q.E.P.’s ongoing strategic plan to add scale to growing its core brands.”

Q.E.P. also conducted an online auction on September 28, 2023, to sell certain machinery and equipment that were not included in the facility sale. This further streamlines the company’s operations and allows it to focus on its core business areas.

To facilitate the transaction, Q.E.P. entered into Amendment No. 5 to its loan and security agreement with Bank of America, N.A., its lending institution. The amendment waives certain covenants and restrictions related to the sale of assets, releases all liens covering the purchased assets, and provides consent for the transaction.

Q.E.P., founded in 1979, offers a comprehensive range of specialty installation tools, adhesives, and underlayment for commercial and home improvement projects worldwide. The company’s products are sold under various brand names, including QEP®, LASH®, ROBERTS®, Capitol®, and more.

With headquarters in Boca Raton, Florida, Q.E.P. operates globally, with offices in Canada, Europe, Asia, Australia, and New Zealand.

For more information about Q.E.P. Co., Inc., please visit their website at www.qepcorporate.com.