US giant Mohawk Industries has expanded its tile portfolio by acquiring Eliane, one of the largest Brazilian companies operating in the ceramic tile sector with a production capacity of around 36 million square metres per annum. This marks Mohawk’s first investment in ceramic tile production in South America. It joins the group’s tile operations which includes Italy’s Marazzi and Emilgroup.
Jeffrey S. Lorberbaum, chairman and CEO of Mohawk Industries, said: “We executed an agreement to purchase Eliane for approximately USD250 million. Brazil is the world’s third largest ceramic tile market, where Eliane is a leader in premium porcelain with annual sales of approximately USD215 million.”
Edson Gaidzinski, Jr, chairman of Eliane, said 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”.
In 2017, 80% of Eliane revenues was generated by sales in the Brazilian market. The remaining 20% was earned from exports to more than 80 countries, including USA, Canada, Latin America, Europe and the Middle East.
Mohawk Industries posted 6% growth in net sales to USD7.5 billion in the first nine months of 2018.
Lorberbaum also confirmed that Mohawk is still on the acquisition trail: “We will continue acquiring premier companies like Eliane to expand our offering and geographic presence.”
By Joe Simpson