Deal for Amtico Looks Good for Mannington

Salem, NJ, March 5, 2012 -- Mannington Mills acquired luxury vinyl tile maker Amtico International from AAC Capital UK and Electra Private Equity for an estimated $200 million (127 million pounds), Dow Jones News reported.

While Mannington didn't disclose the price, Dow Jones cited people familiar with the transaction.

According to the report, ABN AMRO Capital, which later became AAC Capital, acquired its 56% stake in Amtico in 2006 for 98.25 pounds, (approximately $182 million), which would have put the overall value of Amtico that year at $325 million.

“The acquisition of Amtico is an extremely exciting development for Mannington, as it not only brings a world class organization into the Mannington family, but also expands the company’s global market reach as well as the scope of its domestic manufacturing capabilities,” said Russell Grizzle, president and CEO of Mannington Mills, in a press release.

Grizzle also said that Amtico, based in Coventry, England, also with facilities based in Atlanta, will maintain its brand identity and become a Mannington subsidiary, and that operations at all Amtico locations will continue.