In this Thursday, May 14, 2015, file photo, samples from SHAW and other manufacturers are on display at the Chattanooga Flooring Center off of Shallowford Road in Chattanooga.

Shaw Industries Group Inc. is expanding its global presence in carpet tile with the purchase of Scotland-based Sanquhar Tile Services (STS).

The Dalton, Ga.-based Shaw Industries, already the largest North American carpet tile manufacturer, announced Thursday that it has bought STS to expand its presence in the growing carpet tile market in the United Kingdom.

Terms of the purchase were not disclosed.

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Shaw Industries CEO Vance Bell poses for a portrait Friday, Aug. 14, 2015, at their headquarters in Dalton, Ga.
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Yarn spools are lined up Tuesday in Shaw Plant 15 in Cartersville, Ga. where they make the EcoWorx carpet tile. The plant recycles old carpet tiles and scraps and makes new carpet tile.

"This acquisition positions Shaw as a global carpet tile provider," Shaw Industries CEO Vance Bell said in an announcement of the purchase. "STS will be an important part of our commercial business, and we will make substantial capital investments to enhance and modernize their operations."

Shaw plans to keep the management and STS brand name and Bitumen backing carpet tiles sold in Europe. But Shaw also plans to use the STS production facility and its 100 employees in Sanquhar, Scotland, to also make Shaw's carpet tiles, which also are sold in Europe.

The acquisition is the first by Shaw of another carpet tile company. Shaw now produces its carpet tile at facilities it built and developed in Cartersville and Adairsville, Ga., and in Nantong, China.

STS is a 45-year-old company that has long produced carpet tile in the United Kingdom and will continue to serve its customers as part of Shaw's commercial flooring division. Brenda Knowles, vice president of marketing and product development for Shaw's commercial division, said STS' leadership team and staff will continue to operate the business with manufacturing capabilities from tufting through cutting.

"STS will continue to manufacture and sell the products that they have today to existing customers and hopefully expand that, and we will also leverage their capability to produce products for our brands in the market," she said. "This really gives us an opportunity to expand in Europe."

Shaw and STS officials said the two companies, both of which are about a half century old, share a similar culture of innovation, service and long-tenured employees.

"Shaw's continued investment in STS will ensure that we are poised to advance our position in the market and to provide our people with rewarding careers as we focus even more heavily on advanced manufacturing techniques that allow us to best meet current and future customer needs," said Frank Williamson, managing director at STS.

Sanquhar Tile Services Limited, in its present form, was founded in 1971 by the Sidlaw Group. Its roots began in the textile industry in 1915.

Shaw Industries, a subsidiary of Warren Buffett's Berkshire Hathaway, is the world's second biggest floorcovering company behind only Mohawk Industries and generates annual revenues of nearly $6 billion.

Shaw employs more than 22,000 employees around the globe producing a diverse portfolio of carpet, resilient, hardwood, tile and stone, and laminate flooring products, synthetic turf and other specialty items for residential and commercial markets worldwide. Shaw brands include Anderson Tuftex, CoreTec, Patcraft, Philadelphia Commercial, Shaw Contract, Shaw Floors, Shaw Hospitality, Shaw Sports Turf, Southwest Greens and USFloors.

Contact Dave or at 423-757-6340.

This story was updated Feb. 1, 2018, at 10:57 p.m. with more information.