Domcor Completes Acquisition of Certain HFI Assets
10:24 GMT-05:00 Monday, March 26, 2001

FARNHAM, QUEBEC--Domcor, the Canadian-based distribution division of Domco Tarkett, announced today that it completed as of March 23rd last the $1.04-million acquisition of certain HFI Hardwood Flooring (HFI) assets, a major Canadian hardwood flooring product distributor. 

This transaction follows intensive negotiations, including the signing of a Letter of Intent, announced on March 7, 2001. HFI is currently under a Company Creditor's Arrangement Act protective order, pending the submission of a reorganization plan to its creditors. The transaction was made possible through the issuance of two vesting orders in Ontario and Alberta Court authorizing the purchase of certain HFI assets, including its current inventory and tradenames. 

Due to the acquisition, HFI distribution business will be maintained through a new division of Domcor, which shall be called HFI. It will have an administrative office in Calgary, Alberta and will specialize in the wholesale distribution of primarily hardwood flooring products and laminate products as well as related accessories for retail stores and professional installation contractors. 

According to Jim Morando, President of Harris-Tarkett, Inc.,: "By combining Domcor's unparraleled commitment to service the specific needs of its clients, HFI's in-depth wood expertise and Harris-Tarkett's extensive line of quality products, this transaction positions us well to become the wood partner of choice in Canada." 

Commenting on the acquisition, Franois Lemieux, President of Domcor said: "We take great pleasure in helping preserve HFI as an ongoing concern and preserving more than half the jobs there. Domcor's first priority will be to rebuild HFI as a prominent Canadian hardwood distributor. We will restore customer confidence and expand our market share beyond its current Canadian market by providing exceptional service and establishing closer business ties with HFI's customers." 

Mr. Lemieux said that the recruitment and retention of this highly skilled personnel was key to this division's future. He added: "Darrell Tweed, the former Chief Operating Officer of HFI and the division's newly appointed General Manager, has accepted to take up this exciting challenge. With the support of current HFI sales representatives in strategic Western Canada markets (British Columbia, Northern Alberta, Manitoba and Saskatchewan) and our Toronto area product management, we are confident that he will succeed in achieving our immediate goal. In return, HFI will benefit, among other things, from Domcor's dynamic marketing programs, such as our Connaisseur Club for retailers." 

Certain of the assets purchased include 10% of all the issued and outstanding common shares of Floorsnow Technology Corporation, an e-commerce company, as of March 1, 2001, which amount to 400,000 common shares. Domco Tarkett encourages its distributors to explore the use of Floorsnow technology. 

A division of Domco Tarkett Inc., Domcor is the exclusive Canadian distributor of Domco, Azrock, and Nafco products. It also distributes a complete line of flooring products manufactured by other companies. With its National Operations Centre in Farnham, Quebec, Domcor serves Canada through its network of distribution centres in St. LAonard and Ste. Foy (Quebec), Mississauga (Ontario), Winnipeg (Manitoba), Edmonton (Alberta) and Richmond (British Columbia). 

Domco Tarkett Inc., with its head office in Farnham, Quebec, is North America's second largest vinyl and hardwood-flooring manufacturer. Thanks to its nine plants and vast distribution network throughout Canada and the U.S., Domco Tarkett offers one of the most comprehensive, high-quality product lines in the flooring industry. Its products are sold to residential and commercial customers under the brand names of Domco, Azrock, Nafco, Tarkett and Harris Tarkett. Domco Tarkett boasts some 2,200 employees.