Through the acquisition of one prominent flooring company by another, sales within the flooring market are expected to grow significantly.
Earlier this year it was announced that Mohawk Industries, Inc. had entered into a definitive agreement to acquire the IVC Group, which will expand the company’s position as a global flooring manufacturer.
The IVC Group is a major manufacturer of vinyl sheets, luxury vinyl tiles (LVTs) and laminates, with operations in Europe and the United States and sales of approximately $700 million per annum. Mohawk is acquiring IVC for approximately $1.2 billion through a combination of cash and equity. The transaction is expected to be completed around the end of the first quarter of 2015, pending customary closing conditions and regulatory approvals. However, Mohawk anticipates that the transaction will be accretive to EPS in the first twelve months.
“There are many potential synergies between IVC and Mohawk in both Europe and the US,” highlights Jeff Lorberbaum, Mohawk’s Chairman and Chief Executive Officer. “Our greatest opportunities are in LVT, which has increased globally around 18% in the past year. IVC is the fastest growing manufacturer of LVT in Europe, and their manufacturing expertise will help start up our new Belgian LVT factory faster.”
“This new plant will allow IVC to further expand their European sales. In the US, LVT now represents about 5% of the total flooring market, and sales are projected to grow more than 15% annually through the end of the decade. Their new LVT plant in Dalton, Ga. will be one of the world’s largest, most efficient production lines with leading technology and will position us to meet the rapidly growing U.S. market.”
Source: http://www.prnewswire.com; For more information visit www.mohawkflooring.com