Scott Group Custom Carpets, a portfolio company of Keystone Capital acquired in February 2014, has acquired Hokanson Carpets.
Hokanson Carpets is a provider of high end residential carpeting. The company has been involved in some of the most important rug and carpet projects in North America, Europe, the Middle East, Australia and Asia including the restoration of the Russian Royal Palaces in St. Petersburg, the office of Canada’s Speaker of the House and the Burj Khalifa – the world’s tallest building – in Dubai. Hokanson Carpets operates showrooms in New York, Boston, Chicago, Houston (headquarters), Dallas and Los Angeles and additional US and international showrooms are planned by the company. Hokanson Carpets was founded by Larry Hokanson in 1987 (www.hokansoncarpet.com).
Scott Group Custom Carpets is a designer and producer of custom luxury carpets and rugs to the architectural design trade. The company’s carpets can be found in the finest aircraft, luxury retail stores, corporate offices, yachts and residences in the world, including the State Dining Room and Oval Office in the White House. Scott Group owns and operates a manufacturing facility in Grand Rapids, MI (headquarters) with 14 artists and a total staff of 200 employees. The company was founded in 1969 (www.scottgroup.com).
“Together, Scott Group and Hokanson comprise the largest US provider of luxury handmade rugs and carpets,” said Michael Ruggeri, president and CEO of Scott Group. “We have long been admirers of Larry Hokanson and his company and believe that by coming together, we can lead the industry by providing an incredibly broad array of products for the interior design and architectural community.”
The acquisition of Hokanson is consistent with Keystone Capital’s strategy to deliver a broader set of products to Scott Group’s current customer base and to expand its markets. Keystone Capital will continue to evaluate opportunities to add to Scott Group’s portfolio of brands through acquisitions or joint ventures. “Scott Group is poised to continue expanding and will aggressively pursue other future opportunities that enhance value for our world-class client base,” said Mr. Ruggeri.
The combination of Scott Group and Hokanson will not only strengthen the US showroom presence of both companies in Los Angeles, New York, Chicago and Dallas, but expand it by establishing a presence in Houston and Boston. In addition, the combined company will be able to leverage a broader array of products through its network of showrooms and interior designer relationships throughout the world.
2014 PEPD • Private Equity’s Leading News Magazine • 10-26-14
