- Mohawk Industries Inc MHK has agreed to acquire the Vitromex ceramic tile business from Grupo Industrial Saltillo (GIS) for about $293 million in cash.
- Vitromex was founded in 1967 and includes four manufacturing facilities strategically located throughout Mexico.
- Mohawk expects the acquisition to enhance its customer base, manufacturing efficiencies, and logistical capabilities. Vitromex's product offering includes glazed ceramic, porcelain, mosaics, and decorative tiles.
- MHK expects the Vitromex business to be accretive to its earnings. Vitromex generated revenues of about $204 million in 2021.
- The transaction is expected to close in the second half of 2022.
- Commenting on the acquisition, Jeffrey S. Lorberbaum, Mohawk's chairman and CEO, stated, "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."
- Mohawk held $540 million in cash and equivalents as of April 2, 2022.
- Price Action: MHK shares are trading lower by 0.21% at $139.87 on the last check Friday.
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