QEP Completes Sale of Manufacturing Facility in Johnson City, Tennessee
BOCA RATON, Fla., Oct. 03, 2023 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today announced that on September 29, 2023, it completed the sale of its manufacturing facility in Johnson City, Tennessee to Hatley Properties, LLC (“Hatley Properties”), in a transaction valued at $5.3 million.
The facility consists of approximately 295,000 square feet of manufacturing and warehouse space on approximately 48 acres in Johnson City, Tennessee. Prior to this sale, on September 28, 2023, QEP also conducted an online auction to sell certain machinery and equipment that were excluded from this transaction.
As part of the terms of this transaction, Hatley Properties has agreed to allow QEP to remain at the facility through November 2023 in order for QEP to complete an orderly exit including the relocation of its grouting sponge production operations to its manufacturing facility in Dalton, Georgia.
Commenting on the transaction, Len Gould, President & CEO, The Americas, of QEP stated, “This transaction completes QEP’s exit from wood flooring manufacturing. The divestiture of these assets is another step in QEP’s ongoing strategic plan to add scale to growing its core brands of flooring-related tools, adhesives, underlayment and accessory products. Additionally, it is important to recognize the incredible efforts of so many cross-functional employees during this transitional period. Our people are truly the strength of QEP.”
In connection with this transaction, the Company has entered into Amendment No. 5 (the “Amendment”) to the Fifth Amended and Restated Loan and Security Agreement, Waiver, Consent and Release dated February 15, 2021 with its lending institution, Bank of America, N.A. The Amendment waives certain covenants and restrictions relating to this sale of assets, agrees to release all liens covering the purchased assets, and consents to this transaction.
The Company is in the process of making a good faith determination of cost estimates, or ranges of cost estimates, associated with its recent sale of its Harris Flooring Group assets including the transaction described herein.
About QEP
Founded in 1979, Q.E.P. Co., Inc. is a leading designer, manufacturer and distributor of a broad range of best-in-class installation solutions for commercial and home improvement projects worldwide. QEP offers a comprehensive line of specialty installation tools, adhesives, and underlayment. QEP sells its products throughout the world to home improvement retail centers, professional specialty distribution outlets, and flooring dealers under brand names including QEP®, LASH®, ROBERTS®, Capitol®, Premix-Marbletite® (PMM), Vitrex®, Brutus®, Homelux®, PRCI®, Plasplugs®, and Tomecanic®.
QEP is headquartered in Boca Raton, Florida with offices in Canada, Europe, Asia, Australia and New Zealand. Please visit our website at www.qepcorporate.com.
Forward-Looking Statements
All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Forward-looking statements include, but are not limited to, statements regarding the Company’s business following the sale and statements regarding the anticipated pre-tax charges and disposal costs. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties, including those listed in the Company’s annual report, as such risk factors may be amended, supplemented or superseded from time to time by other reports and disclosures made by the Company. Forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.
CONTACT:
Q.E.P. Co., Inc.
Enos Brown
Executive Vice President and
Chief Financial Officer
561-994-5550
