Calhoun, Ga.—Mohawk Industries said it has entered into an agreement to purchase the Vitromex ceramic tile business from Grupo Industrial Saltillo (GIS) for approximately $293 million in cash. The transaction is expected to close in the second half of 2022, according to Mohawk, and is subject to the approval of GIS’s shareholders as well as customary government approvals and closing conditions. The Vitromex business is expected to be accretive to Mohawk’s earnings, the company said.
Vitromex was founded in 1967 and includes four manufacturing facilities strategically located throughout Mexico. When combined with Mohawk’s current Mexican operations, this expanded footprint will enhance the company’s customer base, manufacturing efficiencies and logistical capabilities, the company said.
Vitromex noted that it has built a leading position in the $1.7 billion (2.9 billion square feet) Mexican ceramic tile market with a broad distribution network and a product offering that includes glazed ceramic, porcelain, mosaics and decorative tiles. In 2021, Vitromex reported that it generated revenues of approximately $204 million.
“In the past decade, we have significantly increased our participation in the Mexican ceramic tile market, including developing a world-class organization and constructing a state-of-the-art facility in Salamanca,” said Jeffrey Lorberbaum, chairman and CEO, Mohawk. “Ceramic tile is the primary flooring utilized in Mexico, and the market has grown approximately 11% in pesos per year over the past five years. Combined with Vitromex, we will offer our customers a complete array of residential and commercial products at all price points with enhanced service capabilities. Vitromex is one of the most highly regarded brands in the Mexican market and is recognized as a leader in innovation and design. We are pleased to welcome their talented team into the Mohawk global ceramic business. We will provide additional commentary on the Vitromex acquisition during our second quarter investor call.”
Commenting on the deal, Manuel Rivera, CEO of GIS, said: “For Vitromex, this transaction will represent an opportunity to join one of the main players in the ceramic tile industry worldwide, which will enhance the growth of its business and accelerate the current capacity expansion plans.”