Balta Group said it is purchasing Domo Floorcoverings' broadloom carpet and needle felt plant, carpet tiles plant, and yarn and fiber plant. Balta will have use of the Domo brand through 2013. The purchase excludes Domo's artificial turf and nylon carpet yarn business. Financial terms were not disclosed.
Balta said the move will enhance Balta's product range, which includes broadloom carpet, rugs and laminate flooring, with the addition of carpet tiles and needle felt. Additionally, the company's position in broadloom carpet will be strengthened.
"Until today Balta had no activities related to carpet tiles and needle felt," said Jules Noten, Balta Group ceo. "This will open up a whole new world of products and distribution channels. For broadloom carpet, our residential customers have chosen collections by Balta, ITC and Domo Floorcoverings. With these various collections we can tap into the strengths ... of these business units, without neglecting to harvest the potential synergies operationally."
Balta Group said it will retain the identities of the various business units including Balta, Domo Floorcoverings, ITC and Balterio, as well as the brands Berclon, Line A, Captiqs, Modulyss and Balterio. Following the transaction, Balta's will have a revenue of about 700 million Euros, and employ around 4,000 employees, mainly in Belgium, Turkey and the United States.
"This transaction will create an overlap only for broadloom carpet. After an evaluation period the product ranges will be optimally spread across the various manufacturing facilities and segments," Noten noted.
"The sale of the floor covering activities to Balta will allow for the continuation of strategy for market-oriented product ranges and brands such as Modulyss and Captiqs," added Gregory De Clerck of Domo Group. "These past few years Domo Group's strategy has been aimed at creating a diversified company portfolio consisting of independent businesses each with their own strategies."
The transaction is expected to be concluded by the end of next month, pending approval by the competition authorities.
Balta to purchase Domo Floorcoverings
August 18, 2010