Mohawk Industries to Buy IVC Group for $1.2 Billion

Calhoun, GA, Jan. 13, 2015 -- Mohawk Industries announced today that it has reached an agreement to buy the IVC Group for $1.2 billion. The transaction is expected to be completed by the end of March.

The deal expands the Mohawk's position as the largest flooring manufacturer in the world.

The IVC Group is a major manufacturer of sheet vinyl, luxury vinyl tile (LVT) and laminate, with operations in Belgium and Dalton, Georgia and sales of approximately $700 million.

Mohawk is acquiring IVC through a combination of cash and equity. The transaction is expected to be completed by end of the March. Mohawk anticipates that the transaction will be accretive to earnings in the first 12 months.

The IVC Group was founded in Belgium in 1997 by Filip Balcaen, who is currently IVC's chairman and primary shareholder.

Over the past two decades, IVC has grown rapidly based on a business model that focuses on low cost, state-of-the-art manufacturing combined with a broad product offering that is customized to meet individual channel and customer needs.

IVC primarily distributes its products through large retailers, home centers and regional distributors and is focused on the residential sector. The company employs approximately 1,300 people worldwide.

"There are many potential synergies between IVC and Mohawk in both Europe and the U.S.," said Mohawk CEO Jeffrey Lorberbaum.

"Our greatest opportunities are in LVT, which has increased globally around 18% 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. This new plant will allow IVC to further expand their European sales. In the U.S., LVT now represents about 5% of the total flooring market, and sales are projected to grow more than 15% annually through the end of the decade. Their new LVT plant in Dalton will be one of the world's largest, most efficient production lines with leading technology and will position us to meet the rapidly growing U.S. market."

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