PARIS, FRANCE, August 27, 2018 – Tarkett, a global leader in flooring and sports surfaces solutions, has signed an agreement to acquire 100% of Lexmark Carpet Mills.
Lexmark produces high-quality carpet, primarily for the North American hospitality segment. Lexmark is a well-recognized brand among leading hospitality chains. In recent years, the company has extended its product range to address the residential market.
Headquartered in Dalton, Georgia, USA, Lexmark achieved around $120m of sales in 2017, employs 460 people and operates one plant in the U.S. Lexmark has demonstrated a strong and profitable growth model, particularly through the successful acquisition of Northwest Carpets in 2015, a manufacturer of broadloom carpet for hospitality and niche commercial applications.
“The acquisition of Lexmark will position Tarkett as one of the leaders in the hospitality segment for carpets in North America. We will be able to further strengthen Lexmark’s offering in this segment as they will have access to Tarkett’s broader product portfolio”, explains Glen Morrison, CEO of Tarkett. “We will also leverage Tarkett’s global presence to enhance Lexmark’s positioning with key accounts worldwide.”
“We are very excited to join Tarkett with whom we share the same vision and entrepreneurial values, as well as a strong commitment to servicing customers with solutions designed to meet a wide range of needs. Within the Tarkett group, we will be able to offer a larger choice of products to our customers and partners and provide an even stronger offering”, comments Paul Cleary, CEO of Lexmark.
While the acquisition will be immediately accretive to Group EBITDA margin, Tarkett has also identified sales and supply chain synergies with its North America carpet activities.
The transaction will be financed with an existing credit facility. After the acquisition, Tarkett expects its net consolidated debt leverage ratio to be around 2.5x EBITDA (proforma) at the end of the year.
The transaction is expected to be concluded before the end of this year, subject to regulatory approval and other customary closing conditions.
With net sales of more than €2.8 billion in 2017, Tarkett is a worldwide leader of innovative flooring and sports surface solutions. Offering a wide range of products including vinyl, linoleum, carpet, rubber, wood, laminate, synthetic turf and athletic tracks, the Group serves customers in more than 100 countries worldwide through its major brands: Tarkett, Desso, Johnsonite, Tandus Centiva, Tarkett Sports, FieldTurf and Beynon. With approximately 13,000 employees and 34 industrial sites, Tarkett sells 1.3 million square meters of flooring every day, for hospitals, schools, housing, hotels, offices, stores and sports fields. Committed to “Doing Good. Together”, the Group has implemented an eco-innovation strategy based on Cradle to Cradle® principles and promotes circular economy, with the ultimate goal of contributing to people’s health and wellbeing, and preserving the natural capital. Tarkett is listed on Euronext Paris (compartment A, ISIN: FR0004188670, ticker TKTT) and is included in the following indices: SBF 120, CAC Mid 60. www.tarkett.com.
Founded in 1993, Lexmark Carpet Mills is a leading producer of broadloom carpet for hospitality, residential and niche commercial applications. The Company’s vertically-integrated manufacturing capabilities, state-of-the-art equipment and unsurpassed customer service distinguish Lexmark as a leading specialty mill that is capable of producing quality custom, highly-styled nylon and polyester carpet with industry leading turnaround times. www.lexmarkcarpet.com