The Dixie Group, Inc., is pursuing a partnership with a Dutch tile manufacturer to expand its product offerings and presence in the brand-conscious hospitality market.
Dixie announced today it has signed an agreement to develop a joint venture with Desso,-Holding BV, a Netherlands based company, in conjunction with Masland Contract, a division of The Dixie Group.
"The intent is to build a comprehensive floorcovering offering for the hospitality market in the United States and international distribution," DIxie said in a statement today. "Using nearly 250 years of combined manufacturing excellence, both companies will be able to provide more value in the marketplace with complementary product lines to supply a complete offering to any brand-conscious hospitality environment."
The parties also announced that they have entered into a sales and distribution agreement permitting Dixie Group to be the exclusive distributor in the U.S. of certain Desso high performance tile products. This arrangement is conditioned upon, among other matters, achievement of certain sales levels pursuant to the sales and distribution agreement and the successful launch of the hospitality joint venture.
"Desso and Masland Contract share the same values of producing environmentally responsible flooring products that stand out in their design and functionality," says Daniel K. Frierson, Dixie Group C.E.O. "We look forward to this exciting new venture."
The Dixie Group maintains nine facilities for manufacturing, distribution and yarn processing in the United States. Masland Contract produces some of the world's premier commercial carpet. Its broadloom and modular products excel in design, craftsmanship and performance while maintaining a strong environmentally conscious product.
Desso holds a position as one of the leading tile manufacturers in Europe with two factories and a major distribution center.