June 8, 2022–8:30 a.m.
Calhoun-based Mohawk Industries has entered into an agreement to purchase the Vitromex ceramic tile business from Grupo Industrial Saltillo for approximately $293 million in cash.
The transaction is expected to close in the second half of 2022 and is subject to the approval of GIS’s shareholders, as well as customary government approvals and closing conditions. The Vitromex business is expected to be accretive to Mohawk’s earnings.
Vitromex was founded in 1967 and includes four manufacturing facilities strategically located throughout Mexico.
When combined with Mohawk’s current Mexican operations, this expanded footprint will enhance the Company’s customer base, manufacturing efficiencies, and logistical capabilities.
Vitromex has built a leading position in the $1.7 billion (2.9 billion square feet) Mexican ceramic tile market with a broad distribution network and a product offering that includes glazed ceramic, porcelain, mosaics, and decorative tiles. In 2021, Vitromex generated revenues of approximately $204 million.
In commenting on the acquisition, Jeffrey S. Lorberbaum, Mohawk’s chairman and CEO, stated, “In the past decade, we have significantly increased our participation in the Mexican ceramic tile market, including developing a world-class organization and constructing a state-of-the-art facility in Salamanca. Ceramic tile is the primary flooring utilized in Mexico, and the market has grown approximately eleven percent in pesos per year over the past five years. Combined with Vitromex, we will offer our customers a complete array of residential and commercial products at all price points with enhanced service capabilities. Vitromex is one of the most highly regarded brands in the Mexican market and is recognized as a leader in innovation and design. We are pleased to welcome their talented team into the Mohawk global ceramic business. We will provide additional commentary on the Vitromex acquisition during our second quarter investor call.”