Mohawk Industries announced it 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 (LTV), and laminate, with operations in Europe and the U.S., 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.
Filip Balcaen, who is currently IVC’s chairman and primary shareholder, founded the IVC Group in Belgium in 1997. IVC is a major sheet vinyl provider in Europe and the U.S. and is also a leading player in the fast-growing LTV 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.
“The IVC acquisition positions Mohawk as a major participant in both the fast-growing LVT category and the expanding fiberglass sheet vinyl business,” says Jeff Lorberbaum, Mohawk’s chairman and CEO. “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.”
