BOCA RATON, Fla., Oct. 15, 2012 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTC:QEPC.PK) (the "Company") announced it has executed an asset purchase agreement ("APA") with Harper Brush Works, Inc. ("Harper Brush") as an initial "stalking horse bid" for substantially all of the assets of Harper Brush. Harper Brush is a 112-year-old manufacturer and distributor of quality cleaning products headquartered in Fairfield, Iowa. The company's core products include brushes, push brooms, mops, buckets, dust pans, house wares, long-handled cleaning tools, microfiber/dusting tools, and eco-friendly cleaning products.
On October 1, 2012 Harper Brush filed motions with the U.S. Bankruptcy Court for the Southern District of Iowa seeking orders to approve the APA for the Company to purchase substantially all of its assets under section 363 of Chapter 11 of the United States Bankruptcy Code, and to approve the auction and bidding procedures. Under the APA, the Company would acquire all of Harper Brush's real estate, inventory, intellectual property and other assets for approximately $2.2 million. The auction is to be held in case other potential buyers present proposals and is expected to occur over the next 45 days. Closing of the transactions contemplated under the APA is subject to the satisfaction of customary closing conditions and to court approval, which may not occur.
Q.E.P. Co., Inc., founded in 1979, is a leading worldwide manufacturer, marketer and distributor of a comprehensive line of hardwood flooring, flooring installation tools, adhesives and flooring related products targeted for the professional installer as well as the do-it-yourselfer. Under brand names including QEP®, ROBERTS®, Capitol®, Harris®Wood, Vitrex®, PRCI®, BRUTUS® Nupla® and Elastiment®, the Company markets over 3,000 flooring and flooring related products. In addition to a complete hardwood flooring line, Q.E.P. products are used primarily for surface preparation and installation of wood, laminate, ceramic tile, carpet and vinyl flooring. The Company sells its products to home improvement retail centers and specialty distribution outlets in 50 states and throughout the world.
This press release contains forward-looking statements, including statements regarding required bankruptcy court approvals for, among other things, the APA, participation of other bidders in the auction process, anticipated auction and closing dates, and the satisfaction of the APA's closing conditions. These statements are not guarantees of future actions and actual circumstances could differ materially from expected results.