Condor Acquires Ralux Carpet from Radici

Bergamo, Italy, June 28,2006--Radici Group announced today that a share purchase agreement has been entered into with the Dutch Condor Group, the fourth largest European soft floor covering manufacturer belonging to the Hoekman family, for the sale of Ralux NV, a company also in the business of printed carpet production. RALUX NV, based in Flanders, Belgium, has about 240 employees and recorded sales revenue of €62 million in financial year 2005. When the sale is concluded, Radici Group will no longer operate in the downstream carpet manufacturing sector, which is no longer considered to be compatible with the Italian group’s core businesses. Thus the group will increase its focus on nylon polymers, engineering plastics and synthetic fibres. Finalization of the transaction is subject to the outcome of the usual due diligence. The closing should take place by the middle of July. Radici Group founded Ralux NV in 1972 with the objective of expanding and diversifying--a strategy that is no longer viable. The Flemish company is one of the few companies that has a Millitron licence, which makes it an ideal tufting and printing supplier for the contract (hospitality) market. In addition to carpet for the contract market, Ralux NV produces a wide range of rugs, runners, mats and wall-to-wall carpet, not to mention carpet for the automotive sector. Its finished products are made of polyamide and polypropylene, as well as virgin wool and wool blends. “This major divestiture of a downstream business,” states Angelo Radici, chairman and CEO of Radici Group, “will allow us to achieve our strategy of upstream reinforcement by concentrating on the synthetic fibres sector and better integrating the nylon production chain and our chemicals and engineering plastics business. The sale proceeds will allow us to invest, grow and acquire new companies in our core business areas. Ralux has always benefited from our vertical integration but, in effect, we realized that we could not continue to compete with our customers.” Gerrit and Jan Hoekman, founders and owners of the Condor Group, said: “We are very pleased with this acquisition, which will enable us to play an active role in the consolidation process that is taking place in our industry at the moment. Ralux is one of the leading European printed carpet manufacturers and has recently achieved significant growth in the contract and hospitality segment. It will fit perfectly with our strategic focus on soft floor covering. The brand new 1/20’ gauge Millitron, a highly effective rotation print line and expertise in winch dyeing will broaden the product portfolio of the Condor Group and give us an excellent platform for further growth. We are also pleased that Marc Uleman (currently Ralux’s general manager) will join the Condor Group as general manager of both Ossfloor and Ralux, thus furthering the integration of the two companies. Dave Droomers, currently Ossfloor’s sales director, will head the sales team of the combined companies in the residential market. This acquisition shows Condor Group’s increasing focus on the manufacturing of textile floor covering. We hope our customers will benefit from our widened product range and the new possibilities the Condor Group will have to offer.” Paolo Antonietti, head of the Radici Group Fibres business area, stresses how important the sale is in relation to the group’s future investment plans for the synthetic carpet yarn sector: “Once this strategic sale is finalized, we can increase synthetic fiber production for the residential, contract and automotive flooring market sectors. Our plants are now working at full capacity, but because of the sale we will have at our disposal the resources we need."

Other Archived Articles

Home Builder Sentiment Ticks Down in January   Full Article
Washington, DC, Jan. 20, 2015 -- U.S. homebuilder sentiment edged lower in January but remained well in positive territory, according to the National Association of Home Builders.

Remodeling Market Index Hits Record Level   Full Article
Washington, DC, Jan. 20, 2015 -- The National Association of Home Builders’ Remodeling Market Index posted a record-high result of 60 in the final quarter of 2014.

Fuse Alliance Names Gordon Executive Director   Full Article
Laguna Niguel, CA, Jan. 20, 2015 -- Fuse Alliance, a member-owned organization of professional, commercial flooring contractors, said it has named Geoff Gordon as executive director.

RAK Ceramics Selling Stake in RAK Laticrete   Full Article
United Arab Emirates, Jan. 20, 2015 -- RAK Ceramics plans to sell its stake in RAK Laticrete as part of the company’s strategy to focus on core assets, the firm said.

Julius 'Bud' Shaw, Founder of Shaw Industries, Dies   Full Article
Cartersville, GA, Jan. 20, 2015 -- Julius Clarence "Bud" Shaw, age 85, founder of Shaw Industries, died Jan. 16.

TISE East Changes Location, Dates   Full Article
Dallas, TX, Jan. 20, 2015 -- Informa Exhibitions said that the second annual International Surface Event East 2015 dates have shifted to Nov. 2-5 and the location is moving to Orlando, Florida at the Orange County Convention Center.

Shaw Introduces New Carpet Backing, Protection System   Full Article
Dalton, GA, Jan. 19, 2015 -- Shaw Floors said it is introducing LifeGuard, a new carpet protection system that covers the entire product, from face fiber to backing.

Valinge, System SpA Form Printer Partnership   Full Article
Viken, Sweden, Jan. 19, 2015 -- Välinge Innovation and System SpA have entered into a strategic partnership to supply the flooring and building panel industry with industrial single-pass printers .

Surfaces Show Featuring Booth Crawl Challenge   Full Article
Dallas, TX, Jan. 19, 2015 -- This week's Surfaces show will feature a Booth Crawl Challenge, a new show promotion.

Ceramics of Italy Contest Deadline Extended   Full Article
Bologna, Italy, Jan. 19, 2015 -- The submission deadline for the 2015 Ceramics of Italy Tile Competition has been extended to Jan. 23.

Polley To Be Inducted into WFCA Hall of Fame   Full Article
Anaheim, CA, Jan. 19, 2015 -- David Polley is the newest inductee to the World Floor Covering Association Hall of Fame.

HPS Schönox To Name Contest Winners on Thursday   Full Article
Las Vegas, NV, Jan. 16, 2015 -- HPS Schönox will present the winner of its Schönox Worst Subfloor in North America Contest at Surfaces next Thursday at 11 a.m..

Shnier To Distribute Metroflor's Aspecta in Canada   Full Article
Norwalk, CT, Jan. 16, 2015 -- Metroflor Corp. said it has formed a partnership with Shnier, a leading Canadian floor covering company, to distribute its commercial Aspecta LVT.

Dealer Discovers Rug Owned by FDR   Full Article
New York, NY, Jan. 16, 2015 -- John Ahdoot of Ahdoot Oriental Rugs recently discovered a rug in a New Jersey couple’s home that once belonged to Franklin Delano Roosevelt.

Consumer Sentiment at 11-Year High   Full Article
Ann Arbor, MI, Jan. 16-2015 -- Consumer sentiment in January surged to the highest level in 11 years, according to the preliminary reading of the University of Michigan/Thomson Reuters consumer sentiment index.

Consumer Prices Fall Most in Six Years   Full Article
Washington, DC, Jan. 16, 2015 -- U.S. consumer prices fell 0.4% in December, the largest drop since the end of 2008, according to the Labor Department.

Pharr Yarns Invests in New Space Dye Technology   Full Article
McAdenville, NC, Janu. 15, 2015 -- Pharr Yarns said it has invested in space dye technology for its McAdenville facility to handle the growing demand for sophisticated design.

Engineered Floors Using Dye, Stain Technologies in Soft Nylon   Full Article
Dalton, Ga., Jan. 16, 2015 – Dream Weaver Carpet and Engineered Floors say they are using technology they developed for coloring polyester fiber and applying it to soft nylon.

IVC Deal a Good Sales Opportunity for Mohawk   Full Article
New York, NY, Jan. 15, 2015 -- Stifel Nicolaus still has a "buy" rating on shares of Mohawk Industries following Mohawk's announced acquisition of vinyl firm IVC for $1.2 billion.

Producer Prices Decline in December   Full Article
Washington, DC, Jan. 15, 2015 –- Producer prices fell by 0.3% in December, according to the Commerce Department.