Interface Completes Acquisition of Nora Systems
Atlanta, GA, August 7, 2018--Interface, Inc. (Nasdaq: TILE), a leading global commercial flooring company and worldwide leader in sustainability, today closed its previously announced acquisition of Nora systems via a stock purchase transaction valued at approximately $400 million. Nora is a global leader in performance flooring and worldwide share leader in the rubber flooring category, and was previously majority owned by investment firm Intermediate Capital Group (ICG).
This acquisition expands Interface’s fast growing resilient flooring portfolio and advances its strategy to serve customers in high-growth segments such as healthcare, life sciences, education and transportation.
Nora is considered the leading premium brand in its category, and its rubber flooring products complement Interface’s existing portfolio of modular carpet tile and LVT products. Moving forward, Interface will continue to offer rubber flooring under the nora® brand name.
“We expect the Nora acquisition to accelerate our value creation strategy and drive positive results for all of our key stakeholders,” said Jay Gould, Interface CEO. “We are eager to start working with our new Nora colleagues to better serve our customers. Together we can deliver a wider range of options that meet our customers’ requirements in different commercial applications, helping Interface and our customers to win in the marketplace.”
The Nora acquisition is expected to be accretive to Interface’s adjusted earnings per share, beginning in the third quarter. Nora is anticipated to increase the company’s Adjusted EPS, a non-GAAP measure, $0.03 to $0.06 in 2018, and $0.15 to $0.20 in 2019.
“We are pleased to deliver an accretive acquisition while maintaining a very manageable net debt leverage ratio,” said Bruce Hausmann, Interface CFO. “At the same time, as we announced previously, we are financing the Nora transaction with debt by amending and extending our existing credit facility which effectively refinances all of Interface's debt at lower rates while extending maturity dates out for five years. This is a fantastic outcome.”