In a further addition to its growing tile portfolio, US giant Mohawk Industries is set to acquire Eliane, one of the largest Brazilian groups in the ceramic tile sector with a production capacity of around 36 million sq. metres per annumy and six factories located in the states of Santa Catarina and Bahia. This marks Mohawk Industries’ first investment in ceramic tile production in South America and joins the Group’s operations in USA, Mexico, Europe and Russia.
Jeffrey S. Lorberbaum, Chairman and CEO of Mohawk Industries, announced the acquisition on 25th October during the presentation of the third quarter results: “On October 15, we executed an agreement to purchase Eliane, one of the largest ceramic tile companies in Brazil, for approximately $250 million,” he said. “Brazil is the world’s third largest ceramic tile market, where Eliane is a leader in premium porcelain with annual sales of approximately $215 million. We anticipate the acquisition closing in the fourth quarter.
Edson Gaidzinski, Jr, Chairman of Eliane, says the acquisition: “will trigger a new cycle of development and enable the Eliane brand to maintain its leadership for long into the future by accelerating the strategic investment plan and adopting new technologies and best practices in the various areas of operation”. According to Eliane, the acquisition by Mohawk Industries will not involve any change in business practices, brand structure or management.
In 2017, 80% of Eliane revenues (Real 940 million) was generated by sales in the Brazilian market, where the group’s products are sold at more than 15,000 stores. The remaining 20% was earned from exports to more than 80 countries, including the USA, Canada, Latin America, Europe, and the Middle East.
Lorberbaum has confirmed that Mohawk Industries will continue its strategy of growth through acquisitions. “We will continue acquiring premier companies, like Eliane to expand our offering and geographic presence.”
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