Comparing the companies:
Pharr Yarns LLC
* Founded: 1939
* Ownership: Pharr family
* Staff: 1,200 employees
* Businesses: Yarn manufacturing, real estate, hotel management services
* Facilities: Plants in McAdenville, N.C and Clover, S.C.
Phenix Flooring LLC
* Founded: 2006
* Ownership: Private equity
* Staff: 380 employees
* Business: Residential carpet using premium P.E.T. and nylon carpets
* Facility: Plant in Dalton, Ga.
A 75-year-old yarn maker is expanding into the carpet business by buying one of its customers.
Pharr Yarns LLC, America's biggest independent yarn manufacturer based in McAdenville, N.C., announced Tuesday it will acquire Phenix Flooring LLC in Dalton. The merger, scheduled to be completed in March, will add a fifth business line to the Pharr family of companies as part of the company's efforts to diversify and expand its products.
"We have been the exclusive provider of yarn to Phenix for the past six years, so the merger is a natural step in our evolution," said Bill Carstarphen, the third generation head of the family-owned Pharr Yarns. "The Pharr-Phenix merger provides us a consistent distribution channel for our carpet yarns while continuing our partnership with other carpet manufacturers, both in the U.S. and abroad."
Phenix is a manufacturer of residential floor coverings sold through independent carpet retailers and home improvement chains. In less than nine years, Phenix has emerged as one of the top 10 carpet makers in the industry.
Phenix President Mark Clayton said merging with Pharr will ensure the company has sufficient capital and backing for further expansion and ensures that its exclusive yarn supplier continues to meet its growing demand.
"We are known for our innovative design and customer service capabilities and are excited to further leverage Pharr's product innovation capabilities," Clayton said in a statement Tuesday. "With Pharr's solid financial foundation supporting us, our carpet operation will have access to sufficient capital to continue our growth and enhance our ability to offer a more diverse product offering."
Pharr Yarns began in 1939 as a sales yarn manufacturing company and later expanded into high performance yarns customized for makers of protective apparel used for industrial work wear, the fire services industry and the armed forces.
Through the years, Pharr has adapted to the cyclical changes in the textile industry by investing capital not only back into its spinning operations, but also into the communities that were once home to many of Pharr Yarns' mills in North Carolina.
Through Belmont Land and Investment Co., Pharr develops residential and commercial real estate in mill towns where Pharr once operated. To date, Belmont Land has successfully developed two residential communities in Belmont, N.C., and is currently developing a third in Pharr's hometown of McAdenville, N.C.
Pharr is also involved in the hotel management business through Myrtle Beach, S.C.-based Strand Hospitality Services, manager of hotel properties primarily located throughout the eastern United States.
Contact Dave Flessner at dflessner@timesfree press.com or at 757-6340.