Georgia-based flooring manufacturer Mohawk Industries is in talks to acquire an Italian tile maker for $1.2 billion, according to published reports.
Mohawk is in late-stage talks to purchase The Marazzi Group, a ceramics company with a foothold in the U.S. and many major international markets, according to Reuters, which quoted two unnamed sources.
Mohawk officials declined to comment on Friday, and The Marazzi Group’s executives were not immediately available.
Like other flooring manufacturers, Calhoun-based Mohawk suffered during the housing slowdown, with revenues and sales taking a dive since late 2006.
But the company has rebounded this year, showing strong revenue growth the last three quarters, partly driven by the strength of its Dal-Tile ceramic brand.
Executives may see an opportunity to further expand into the tile business. More than half of U.S. flooring sales are now for carpet and rug products, but ceramic tile now accounts for about 12 percent of the market, and some analysts predict that number will grow.
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