Grupo Industrial Saltillo (GIS) announced today that it has reached an agreement with the American company Industrias Mohawk to sell Vitromex ‘s ceramic tile business for approximately 293 million dollars in cash.
Mohawk said it expects the transaction 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 US company, based in Georgia, expects the Vitromex business to increase its presence in the Mexican market and its global profits.
Vitromex was founded in 1967 and includes four production plants in Mexico. Mohawk said in a statement that adding Vitro’s operations to its own in the country “will improve the company’s customer base, manufacturing efficiency and logistics capabilities.”
Jeffrey S. Lorberbaum, Mohawk’s president and CEO, said the company has “significantly” increased its share of the Mexican tile market over the past decade. Before announcing the purchase of Vitromex’s ceramic coatings division, Mohawk had already built a “state of the art” facility in Salamanca, Guanajuato.
Ceramic tile is the main flooring used in Mexico, and the value of the market has grown approximately 11% per year for the last five years.
“In combination with Vitromex, we will offer our customers a complete range of residential and commercial products at all price points with enhanced service capabilities. Vitromex is one of the most appreciated brands in the Mexican market and is recognized as a leader in innovation and design,” Lorberbaum said.
The operation is subject to the approval of the authorities. GIS’ financial and legal advisors for this transaction were Seale & Associates and Santamarina y Steta, respectively.
