Mohawk Industries Inc. has announced it has entered into a definitive agreement to acquire the Marazzi Group, which will make Mohawk the worldwide leader in ceramic tile.
The Marazzi Group is a leading manufacturer and marketer of ceramic tile in all its major geographies, including Russia, the U.S., Italy, France and Spain. Marazzi’s 2011 revenues were about $1.16 billion, with EBITDA of approximately 15.5 percent under historical IFRS accounting. Marazzi is held by the Marazzi family and two private equity funds: Permira and Private Equity Partners.
Ceramic tile remains the world’s most widely utilized flooring product with an estimated worldwide consumption of more than 110 billion square feet and annual growth of 5 to 6 percent. Marazzi distributes ceramic tile in more than 100 countries through a strong international sales force, which will increase Mohawk’s worldwide growth.
Jeff Lorberbaum, Mohawk’s chairman and chief executive officer, states: “This acquisition represents the next step in the expansion of Mohawk’s global business and will make Mohawk a stronger company. 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.”
In the U.S., Marazzi’s products are sold through independent distributors, home centers and a few company service centers. The total residential and commercial offerings complement each other and can satisfy every requirement in the market. Mohawk will also be able to provide additional products from its facilities in Mexico, China and Europe to compete directly with the large quantity of imported ceramic tile.
Be the first to comment on "Mohawk Industries Purchases Marazzi Group"