CALHOUN, Ga., Jan. 13, 2015 /PRNewswire/ -- Mohawk
Industries, Inc. (NYSE: MHK) today announced that the Company
has entered into a definitive agreement to acquire the IVC Group,
which expands the Company's position as the leading global flooring
manufacturer. The IVC Group is a major manufacturer of sheet
vinyl, luxury vinyl tile (LVT) and laminate, with operations in
Europe and the United States and sales of approximately
$700 million. 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. Mohawk anticipates that the transaction will be
accretive to EPS in the first twelve months.
The IVC Group was founded in Belgium in 1997 by Filip Balcaen, who is currently IVC's chairman
and primary shareholder. IVC is a major sheet vinyl provider in
Europe and the U.S. and is also a
leading player in the fast growing LVT category. Over the past two
decades, IVC has grown rapidly based on a business model that
focused on low cost, state-of-the-art manufacturing combined with a
broad product offering which is customized to meet individual
channel and customer needs. IVC primarily distributes their
products through large retailers, home centers and regional
distributors and is focused on the residential sector. The company
employs approximately 1300 people around the globe.
Jeff Lorberbaum, Mohawk's
chairman and chief executive officer, stated, "There are many
potential synergies between IVC and Mohawk in both Europe and the U.S. 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 U.S., 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."
IVC's sheet vinyl is constructed with a fiberglass core that
provides a cushioned product that does not crack, curl or expand,
making it durable and easy to install. These performance
features are preferred by the consumer and should enhance our
growth. Mohawk has distributed sheet vinyl and LVT products for a
number of years and expects the IVC products to complement its
existing offering.
Lorberbaum said, "The IVC acquisition positions Mohawk as a
major participant in both the fast growing LVT category and the
expanding fiberglass sheet vinyl business. Mohawk continues to
utilize its strong management and balance sheet to increase its
participation in the worldwide flooring industry. Today, Mohawk has
leading brands and market positions in all flooring types,
including ceramic, carpet, laminate, wood, sheet vinyl, LVT, stone
and rugs. The U.S. market remains Mohawk's primary focus,
comprising about 70% of our business, with expanding positions in
Mexico, Europe, Russia, Asia
and Australia. The U.S. flooring
market is expected to grow faster over the next few years, and we
are well positioned to maximize our results. In Europe, our product offerings will satisfy all
consumer preferences positioning us well as the economic recovery
gains traction. The IVC acquisition strengthens Mohawk's position
as a leading global flooring manufacturer and provides a platform
for significant future growth."
Mohawk has scheduled a conference call at 11:00 a.m. Eastern Time on Wednesday, January 14, 2015, to discuss the IVC
acquisition. The telephone number is 1-800-603-9255 toll free for
US/Canada and 1-706-634-2294 for
International/Local. Conference ID #65022236. A replay will also be
available until January 28, 2015 by
dialing 1-855-859-2056 toll free for US/local calls and
1-404-537-3406 for International/Local calls and entering
Conference ID #65022236.
ABOUT MOHAWK INDUSTRIES
Mohawk Industries is the leading global flooring manufacturer
that creates products to enhance residential and commercial spaces
around the world. Mohawk's vertically integrated manufacturing and
distribution processes provide competitive advantages in the
production of carpet, rugs, ceramic tile, laminate, wood, stone and
vinyl flooring. Our industry-leading innovation has yielded
products and technologies that differentiate our brands in the
marketplace and satisfy all remodeling and new construction
requirements. Our brands are among the most recognized in the
industry and include American Olean, Bigelow, Daltile, Durkan,
Karastan, Lees, Marazzi, Kerama Marazzi, Mohawk, Pergo, Unilin and
Quick-Step. During the past decade, Mohawk has transformed its
business from an American carpet manufacturer into a leading global
flooring company with operations in Australia, Brazil, Canada, China, Europe, India, Malaysia, Mexico, Russia and the
United States.
Certain of the statements in the immediately preceding
paragraphs, particularly anticipating future performance, business
prospects, growth and operating strategies and similar matters and
those that include the words "could," "should," "believes,"
"anticipates," "expects," and "estimates," or similar expressions
constitute "forward-looking statements." For those statements,
Mohawk claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. There can be no assurance that the
forward-looking statements will be accurate because they are based
on many assumptions, which involve risks and uncertainties. The
following important factors could cause future results to differ:
changes in economic or industry conditions; competition; inflation
in raw material prices and other input costs; energy costs and
supply; timing and level of capital expenditures; timing and
implementation of price increases for the Company's products;
impairment charges; integration of acquisitions; international
operations; introduction of new products; rationalization of
operations; tax, product and other claims; litigation; and other
risks identified in Mohawk's SEC reports and public
announcements.
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SOURCE Mohawk Industries, Inc.