Mohawk to acquire Vitromex ceramic business
Calhoun, Ga.-Mohawk Industries said it has entered into an agreement to purchase Vitromex’s ceramic tile business from Grupo Industrial Saltillo (GIS) for approximately $293 million in cash. The transaction, according to Mohawk, is expected to close in the second half of 2022 and is subject to GIS shareholder approval, as well as customary government approvals and closing conditions. The Vitromex business is expected to contribute to Mohawk’s revenues, the company said.
Vitromex was founded in 1967 and comprises four production facilities strategically located throughout Mexico. Combined with Mohawk’s current Mexican operations, this expanded footprint will improve the company’s customer base, production efficiency and logistics capabilities, the company said.
Vitromex noted that it has built a leadership position in the $1.7 billion (2.9 billion square feet) Mexican ceramic tile market with a broad distribution network and product offerings that include glazed ceramics, porcelain, mosaics and decorative tiles. In 2021, Vitromex reported generating revenue of approximately $204 million.
“Over the past decade, we have significantly increased our participation in the Mexican ceramic tile market, including developing a world-class organization and building a state-of-the-art facility in Salamanca,” said Jeffrey Lorberbaum, Mohawk Chairman and CEO. † “Ceramic tiles are the main floor covering used in Mexico and the market has grown at approximately 11% in pesos per year over the past five years. In conjunction with Vitromex, we will offer our customers a complete range of residential and commercial products in all price ranges including enhanced service capabilities.Vitromex is one of the most valued brands in the Mexican market and recognized as a leader in innovation and design.We are delighted to welcome their talented team to Mohawk’s global ceramic business.We will provide additional commentary on the Vitromex acquisition during our Q2 investor call.”