Panaria Takes Over Florida Tile

Lakeland, FL, February 28, 2006--Florida Tile Industries Inc. is getting some Italian flair for a reported cost of $22.5 million. And it has nothing to do with the Olympics, according to the Lakeland Ledger. The company, founded in 1954, has been purchased by Panaria Industrie Ceramica, a publicly traded Italian company. A press release on the company's Web site listed the cost. "It is a very positive development," said Buck Burwell, who will remain as Florida Tile's chief executive officer. "The company's base for U.S. operations will stay in Lakeland. This essentially gives the Italian company, Panariagroup, a foothold in the U.S." The only change for Florida Tile Industries Inc. will be in its new name -- Florida Tile Inc. The company's 550 employees, about 80 of which are in Polk, will remain with the company. "With this transaction, we concluded a very important investment, not only in manufacturing, but also in logistics and distribution, that otherwise would have required more financial effort and a longer time to be realized," Panariagroup chairman Giuliano Mussini said in a written statement. With the recent purchase, Panariagroup also has acquired Florida Tile's manufacturing plants in Georgia and Kentucky, the national distribution center in Kentucky, and 25 company branches throughout the country. Florida Tile's two Polk County distribution centers, in Winter Haven and Lakeland, will remain open, along with its customer service center and corporate offices, both in Lakeland. Panariagroup purchased Florida Tile from Milestone Capital Partners LP, a Washington D.C.-based equity fund. Milestone Capital Partners originally purchased Florida Tile in November 2003 from Illinois Tool Works. "It is a good company with a lot of substance behind it," said Nis Nissen, who is handling public relations for Florida Tile. Shortly after the deal in late 2003, the company announced the Lakeland manufacturing plant on Sikes Boulevard would close, but corporate offices would remain. The plant shut down its operation in late 2003 and moved the company's corporate offices to downtown Lakeland. The site of the former plant covers 23 acres, of which a 20-acre parcel is listed for sale at $8.9 million. As part of the city's redevelopment of the downtown Lake Wire area, officials hope to possibly attract a new grocery store or hotel to the site. And company officials are helping to recruit developers who share the same redevelopment vision. "We are trying to find the right developer where we can make a positive contribution to downtown," said Burwell. "We have had substantial interest in it, but we are being very careful and choosy. That site is important to us, too."