Shares of Calhoun-based Mohawk Industries Inc. are up 5 percent since the company announced a week ago that it was acquiring vinyl tile and laminate manufacturer IVC Group of Belgium for $1.2 billion in cash and equity.
IVC, which also produces sheet vinyl, has operations in Europe and the U.S. The deal is expected to be completed by the end of the first quarter.
Mohawk’s shares closed Tuesday at $168.83, up 38 cents. After the deal was announced Jan. 13, the stock closed at $160.11. The stock’s 52-week high is $170.06.
Mohawk Chairman and Chief Executive Officer Jeff Lorberbaum said the company’s greatest opportunities are in the luxury vinyl tile produced by IVC, which has sales of $700 million. U.S. sales of luxury vinyl tile is expected to grow 15 percent annually through the end of the decade, the CEO said.
In 2013, Mohawk received European Commission approval to acquire Belgian panel board manufacturer Spano Invest NV for $168 million in cash. Spano is a manufacturer and distributor of chip and melamine boards used in furniture construction and as building materials.
That same year, Mohawk completed a $1.6 billion buyout of Italian ceramic tile maker Marazzi Group, and it also completed its purchase of Swedish laminate flooring company Pergo for $150 million.
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