IVC's Dalton production plant is where workers produce 1,000 rolls of vinyl flooring per day.Mohawk Industries, Inc. will pay $1.2 billion to acquire the IVC Group, one of the biggest manufacturers of sheet vinyl, luxury vinyl tile (LVT) and laminate.
Mohawk, the world's biggest flooring company based in Calhoun, Ga., announced the purchase agreement after the markets closed today.
The Belgium-based IVC, which operates in both Europe and the United States, has sales of about $700 million and is expected to boost Mohawk earnings within the first year.
"There are many potential synergies between IVC and Mohawk in both Europe and the U.S," Mohawk CEO Jeff Lorberbaum said in announcing the deal. "Our greatest opportunities are in LVT, which has increased globally around 18 percent in the past year. IVC is the fastest growing manufacturer of LVT in Europe, and their manufacturing expertise will help start up our new Belgian LVT factory faster.
The IVC Group was founded in Belgium in 1997 by Filip Balcaen, who is currently IVC's chairman and primary shareholder. IVC is a major sheet vinyl provider in Europe and the U.S. and is also a leading player in the fast growing LVT category.