Calhoun, Ga.—Mohawk Industries announced that the company has entered into a definitive agreement to acquire the IVC Group. The IVC Group is a major manufacturer of sheet vinyl, luxury vinyl tile (LVT) and laminate, with operations in Europe and the U.S. and sales of approximately $700 million. Mohawk will acquire IVC for approximately $1.2 billion through a combination of cash and equity. The transaction is expected to be complete 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 12 months.
“There are many potential synergies between IVC and Mohawk in both Europe and the U.S.,” said Jeff Lorberbaum, chairman and CEO, Mohawk. “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 its manufacturing expertise will help start up our new Belgian LVT factory faster. This new plant will allow IVC to further expand its 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. The new LVT plant in Dalton 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.”
Mohawk has scheduled a conference call at 11 a.m. EST on Wednesday, Jan. 14 to discuss the IVC acquisition. The telephone number is 1.800.603.9255 toll free for U.S./Canada and 1.706.634.2294 for International/Local. Conference ID #65022236. A replay will also be available until Jan. 28 by dialing 1.855.859.2056 toll free for U.S./Canada and 1.404.537.3406 for International/Local. Conference ID #65022236.