Mohawk Industries plans to acquire leading ceramic tile manufacturer The Marazzi Group.
The $1.5 billion acquisition will make Mohawk, a flooring industry leader best known for carpeting, the world leader in ceramic tile, according to the company. The Marazzi Group is said to be the leading manufacturer and marketer of ceramic tile in all its major geographies, including Russia, the United States, Italy, France and Spain, with 2011 revenues of nearly $1.2 billion. The deal is expected to close in the first quarter of 2013.
"This acquisition represents the next step in the expansion of Mohawk's global business and will make Mohawk a stronger company," said Mohawk chairman and CEO Jeff Lorberbaum. "We found Marrazi attractive because of its solid management team and leadership positions in the U.S., Russia and Europe. Marazzi's differentiated products, leading-edge design, efficient manufacturing and exemplary service have created one of the most valued brands in the industry. We have many opportunities to improve results by leveraging best practices, operational expertise, product innovation and manufacturing assets."
Marazzi distributes ceramic tile in more than 100 countries with worldwide consumption estimated to be more than 110 billion square feet and annual growth in the range of 5% to 6%. Marazzi operates two manufacturing sites, 21 regional distribution centers and franchises 300 retail stores that carry only Marazzi products.
"The combination of Mohawk and Marazzi creates opportunities to expand U.S. distribution through service centers and other channels, source ceramic from our worldwide assets, utilize our relationships to expand all product categories and deploy leading innovation and design trends to all of our ceramic businesses around the globe," Lorberbaum said.