Bob Shaw's Engineered Floors to merge with J&J Industries

Jeff Smith unloads spools of carpet fiber from an extruder at the J + J Flooring Group facility Monday, Sept. 28, 2015, in Dalton, Ga.

David Jolly, president and CEO of the J + J Flooring Group, is photographed at the company's corporate offices Monday, Sept. 28, 2015, in Dalton, Ga.

Engineered Floors, the fast-growing brainchild of carpet pioneer Bob Shaw, will merge with J&J Industries, a 60-year-old family company that specializes in commercial carpet.

The merger makes the combined entity, which will remain under the chairmanship of Shaw, the third-largest carpet company in the U.S. with about $625 million in revenue, according to figures compiled by Floor Focus magazine. The merged company will employ more than 2,500 employees and include more than 4 million square feet of manufacturing space, officials said.

Shaw, the onetime chief executive of Shaw Industries, has rapidly expanded Engineered Floors by building three large, high-tech factories in Northwest Georgia to compete with established players by selling carpet for use in apartment buildings and single-family homes. His latest deal will allow the company to expand into new commercial segments as well, using the J&J brand name and sales channels to continue its explosive growth.

Bob Shaw, chairman of Engineered Floors, has merged his company with J&J Industries, a 60-year-old family business that specializes in commercial carpet.

"Bob Shaw continues to amaze me and everybody that follows him," said Kemp Harr, publisher of Floor Focus Magazine. "He continues to surprise everyone in the business with his stamina and ability to grow his business."

Engineered Floors began life five years ago as the second act of 80-year-old Shaw, launched with a laser focus on the so-called multifamily market, offering inexpensive and durable carpet for sale in apartment complexes during the recession, just as the market for rental housing began to take off. Shaw came out of retirement after, in his own words, he got bored with golf. Then he took the carpet world by storm.

Using a newer and more efficient process to give carpet its color, Engineered Floors was able to sell carpet of a similar quality to its competitors for less money. That enabled the company to expand into the single-family retail market with the purchase of Dreamweaver, and now into the commercial market thanks to the merger with J&J Industries.

"J&J Industries has, for over 60 years, demonstrated strong support for northwest Georgia, while producing commercial carpets of outstanding quality," Shaw said. "They are a perfect fit to complement our residential focused manufacturing business, and as such, we plan for J&J to operate as a separate, commercial division of our company."

J&J, established in 1957 by the Jolly family, will continue to operate its business, including its 950,000-square-foot plant and current headquarters, as a division of privately-owned Engineered Floor.

Jim Jolly, chairman of J&J, said the companies common values and roots in Northwest Georgia help ease the combination of the two businesses.

"We are excited to join Engineered Floors and provide the commercial expertise and production to their rapidly growing residential business," Jolly said.

The deal is expected to close by Feb. 29, pending regulatory and shareholder approval.