Mohawk Industries announces major acquisition to capture rapidly growing LVT market (luxury vinyl tile as shown above).

With manufacturing facilities near each other both in Georgia and Belgium, and new plants about to open, Calhoun-based Mohawk Industries Inc. has announced that it is continuing its “aggressive growth strategy” by acquiring the Belgian IVC Group.

Jeff Lorberbaum, Mohawk’s chairman and CEO, announced in a morning conference call on Jan. 14 that the acquisition of the Belgian company is to cost about $1.2 billion through a combination of cash and equity once the deal is completed by the end of the first quarter. 

He also said the geographic proximity of the companies’ facilities in Georgia and Belgium should allow for synergies in administration, manufacturing, sales and transportation. IVC Group’s senior executives are expected to remain with Mohawk.

In addition, he said that the acquisition is in keeping with the company’s switch in strategy from “conservative” to “aggressive” that Mohawk undertook in 2012 with the acquisition of facilities in seven countries following the global recession.

IVC develops and manufactures vinyl floors at two state-of-the-art production units in Europe: IVC Avelgem in Belgium, the site of the group’s head office, and IVC Wiltz in Luxembourg. It also has distribution centers in Russia and Poland serving Central and Eastern Europe.

Mr. Lorberbaum said that the acquisition positions Mohawk in the fast growing sheet vinyl, luxury vinyl tile and laminate (LVT) market, which, he added, grew at 18 percent in 2014.

IVS US built a 520,000-square-foot vinyl plant in Dalton that opened in 2011. Last year, IVS officials broke ground on a $100 million vinyl plank and tile plant at the same site, which is expected to add 200 jobs.

“Their new LVT plant in Dalton will be one of the world’s largest, most efficient production lines with leading technology and will position us to meet the rapidly growing U.S. market,” Mr. Lorberbaum added.

During the call, he added that IVS is building a new LVT plant in Belgium near to where Mohawk’s carpet operations also are located and are expanding.

Filip Balcaen founded the IVC Group in 1997 based on a low cost, state-of-the-art manufacturing model with a board product offering. 

To listen to the Jan. 14 conference call, which is to be available until Jan. 28, dial 1-855-859-2056 or 404-537-3406 and enter conference identification number 65022236#