US based leading flooring product supplier Mohawk Industries announced it has entered into a definitive agreement to acquire Unilin Holding NV, a leading manufacturer and marketer of laminate flooring products based in Belgium.
Unilin had annual sales in Belgian GAAP of approximately euro 837 million (US$1.0 billion) and EBITDA margins in excess of 29%. The transaction is valued at approximately euro 2.2 billion (US$2.6 billion), including net cash balances of euro 28 million (US$33 million).
Jeffrey S. Lorberbaum, Chairman and Chief Executive Officer of Mohawk, stated, "The acquisition of Unilin represents the second major step in diversifying into a total flooring company.
The acquisition of Dal-Tile in 2002 made Mohawk the largest provider of ceramic in the U.S. Since that combination, we have been able to grow market share, improve costs, and expand Dal-Tile sales at a 15.4% CAGR since 2001. We have expanded the customer base, broadened the product line, improved the merchandising and enhanced the service levels.
"Laminate flooring has demonstrated exceptional growth and market share gains in Europe over the last decade and the 2004 U.S. market of $1.2 billion, which grew at 24% from 2003, is currently anticipated to grow in excess of 15% per annum.
Unilin is a leader in high-end laminate with strong positions in both the U.S. and Europe. The market position and high margins of Unilin reflect the superior performance of the current operating management team who has developed one of the best recognized brands in Quick-Step."
marketing@alchempro.com
