Mohawk Industries has signed a deal to buy a Mexican ceramic tile manufacturer for $293 million in cash.
The Calhoun, Georgia-based carpet and tile maker, which is already the biggest floorcovering company in the world, announced Friday it will acquire Vitromex and its four manufacturing facilities located throughout Mexico. Vitromex, which was started in 1967, is owned by the Grupo Industrial Saltillo (GIS). The company had revenues of $204 million in 2021.
Mohawk CEO Jeff Lorberbaum said the acquisition will expand the company’s customer base, manufacturing efficiencies and logistical capabilities in Mexico.
“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,” Lorberbaum said in a Friday announcement of the purchase. “Combined with Vitromex, we will offer our customers a complete array of residential and commercial products at all price points with enhanced service capabilities.”
Ceramic tile is the primary flooring utilized in Mexico, and the market has grown about 11% in pesos per year over the past five years to become a $1.7 billion market, Loberberbaum said.
“Vitromex is one of the most highly regarded brands in the Mexican market and is recognized as a leader in innovation and design,” he said.
Vitromex produces and sells a variety of glazed ceramic, porcelain, mosaics and decorative tiles.
The purchase is expected to close in the second half of 2022, subject to approval by GIS shareholders and governmental regulators. Mohawk said it expects the purchase will add to Mohawk earnings once completed.
But in an otherwise down market Friday, shares of Mohawk Industries fell by 0.72%, or $1.01 per share, to close at $139.15 in trading on the New York Stock Exchange.
Mohawk’s U.S. ceramic brands include Mohawk, Daltile, American Olean, Marazzi, Rango and Emil Ceramica. In 2018, the company acquired Brazil-based Eliane.
The purchase of the Mexican tile manufacturer is the latest step in a decadelong expansion by Mohawk to build its floorcovering business throughout the world. Since 2010, Mohawk has transformed its business from an American carpet manufacturer into the world’s largest flooring company with operations around the globe and sales last year of nearly $11.6 billion.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340. Follow him on Twitter @dflessner1.