Carpet Maker Bags A Carpet Seller 1 96 BMW 318tia ........ .. -• JULIE EDGAR STAFF WRITER T he world's biggest carpet re- tailer has been gobbled up by the world's largest car- pet manufacturer. The price tag on the Detroit- based New York Carpet World was not released. The company's annual sales are estimated to be between $400-$450 million. After Shaw Industries of Dal- ton, Ga., announced its purchase of the company on May 23, its stock price jumped by 50 cents, to about $13.50, said Vice President Julius Shaw. Last year, company sales reached $2.9 billion. The purchase of the nearly 200- store chain, which was founded by Abraham Nusbaum nearly 70 years ago, is part of Shaw's recent move into the retail sector. Since December, the company has ac- quired $250 million worth of re- tail concerns, Mr. Shaw said. The buy was greeted warmly by Wall Street. `The investors and the analysts view this as very- good news. They want a good channel of distribu- tion for our products. This was cer- tainly the most high-profile company in our industry," Mr. Shaw said. The carpet industry, he added, is "fragmented." Most of the 25,000 or so carpet retailers in the country are single-store, family- owned operations, so, "to find something the size of New York Carpet World is very rare. "They are an extremely well- run company, so besides being the largest, they also fit into what we were looking for: not only size but a well-managed company," Mr. Shaw said. Shaw Industries was founded by Mr. Shaw's grandfather in the late 1940s as Star Dye Company. By the early 1970s, the company had bought a large carpet man- ... • The automo•ile shown has optional active package • • •• • ufacturer and become Shaw In- dustries. Mr. Shaw's uncle, Robert E. Shaw, is chairman and CEO of the company. Marvin Berlin, president and co-owner of New York Carpet World, said other offers to buy have been made, but Shaw's was the best. "Mr. (Robert) Shaw understood the business better than anybody else. We'll be able to open stores at a faster pace than we've been opening them now," he said. Selling the carpet chain, which has locations in 17 states, was about recognizing the need to grow. New York Carpet World plans to add to its stable in the greater Detroit area, where there are four outlets, and expand in Indiana and Florida. The company em- ploys 4,000 individuals nation- wide. Mr. Berlin, a Southfield resi- dent, will remain at the helm of the company, which he joined some 30 years ago. Co-owner Irv- ing Nusbaum, the son of the founder, has been retired for the past five years. "I think it's a technical kind of a transfer. I don't think anybody will feel the difference other than we're accelerating what we're do- ing," Mr. Berlin said. Retail feasibility consultant Jeff Green of the Green Group in Troy speculated that Mr. Berlin and Mr. Nusbaum sold the carpet gi- ant because profit margins are slim "and it (the carpet business) is so price driven that any carpet retailer has got to be the best priced unless it's offering service." Mr. Green noted that Beckwith Evans, a carpet retailer with five stores in the region, shut its doors two weeks ago without much no- tice. ❑ LEADING ISRAELI STOCKS TRADED ON U.S. EXCHANGES C/) LU LU 4 CC UJ CZ) U_I 08 ER LItk 1 11 BMW 25. 1 0 3 1$W Michigan's Largest and Most 4065 Maple Experienced BMW Dealer Just E. of Telegraph Family Owned and Operated Since 1964 Bloomfield Hills OPEN SATURDAY SALES 10A.M.-4P.M. SERVICE/PARTS/SALES 9 p.m. Mon. & '30 month closed end lease Subject to approved credit With BMWFS. $2500 non-refundable down payment required. Tale, license, and use tax additional. A security deposit of $300 for 318tia, $450.00 for 328ia and $900.00 for 740iL. 10.000 miles per year limit $.15 cents per mile over limit. MSRP 01522,105 for 318tia, $36,020 for 328ia, and $65,000 for 740iL Option to purchase at lease end of $14,589 for 318tia, $24,494 for 328tia, and $40,300 for 740iL Total payments equal to ad price ,6% x 36. Vehicles subject to availability and may need to be ordered. The 318tia pictured has Active Package op- tion at additional cost Scheduled Maintenance provided by BMW of Norht America for any 1996 vehicle leased through BMWRS for a period of 36 months or 36,000 miles. Offer ends June 30, 1996. Symbol Name SCIXF Scitex Exchange May 24 May 31 Change NASDAQ '19.25 '26.50 '47.37 '19.50 '26.50 '45.50 +$0.25 '20.37 '19.25 +'0.00 -$1.87 5 1.12 '16.25 '14.37 '16.87 '14.12 '12.25 +'0.62 -$0.25 -$0.87 '27.00 ECILF ECI Telecom NASDAQ TEVIY I EC Teva Pharm PEC Israel ELBTF ELT ELRNF Elbit Computers Elscint LTD Elron Electronics NASDAQ NYSE NASDAQ TAD Tadiran CMVT Comverse ISL First Israel Fund NYSE NASDAQ NYSE NASDAQ NYSE '13.12 '24.58 '27.75 '28.62 +$2.42 +$0.87 $12.37 $12.62 +$0.25 Source: Allen Olender, Prudential Securities, West Bloomfield.