Stifel Says Mohawk's Acquisition of Emil Ceramica Nearly Complete
St. Louis, MO, January 25, 2016—Analyst Stifel believes that Mohawk has nearly completed its acquisition of Italian tile manufacturer Emil Ceramica, a move that was first reported in an Italian newspaper in September 2016.
“We believe Mohawk is close to finalizing the acquisition of Emil Ceramica, an Italian tile manufacturer. We had first seen this possible acquisition reported in September of 2016 by the Italian press but the deal was evidently not consummated until recently. Emil Ceramica’s revenues were reported to have been in a range of 150-160 million Euros revenue and we believe the margin profile is quite strong with EBITDA perhaps in the upper teens. Emil Ceramica operates at relatively high price points and has facilities in Europe very close to existing Marazzi facilities. We expect material synergies from the transaction, but note that the scale (approximate 2% addition to annual revenues) will limit the financial impact overall.”
The analyst continues, “Mohawk is familiar with the company, with Dal-Tile having a JV prior to the MHK/Dal-Tile acquisition and Emil Ceramica assisted Mohawk with the construction of a tile plant in Oklahoma. Clearly this is not a large acquisition (Mohawk’s global ceramics business generates well over $3 billion in revenue currently and should do in excess of $9 billion in total in 2017), but it does fit nicely into the existing business and could perhaps allow for some manufacturing synergy opportunities.”