GIS sells Vitromex to Mohawk Industries for $299 million
By Editorial
March 6, 2023
GIS finalized the sale of Vitromex , its ceramic tile business, to the company Mohawk Industries, Inc. after having obtained the approval of the Federal Economic Competition Commission (Cofece) and complied with the conditions agreed in the respective contract.
In the announcement to the Mexican Stock Exchange (BMV) it was announced that the value of the transaction, after adjustments for Working Capital and Net Debt, amounted to 299 million dollars.
GIS explained that the net resources will be used by the company for debt prepayment, support for expansion projects and other corporate purposes.
"2023 will be a year of transition with a focus on the startup of operations of Draxton's expansion investments, which will be reflected in profitability as of 2024," said Jorge Rada, CEO of GIS.
The transaction included the sale of all the shares of Vitromex USA Inc. and Manufacturas Vitromex, SA de CV, a company dedicated to the manufacture and sale of ceramic and porcelain floor and wall coverings.
“This transaction gives us financial flexibility to strengthen GIS's balance sheet and support the growth strategy. We wish Vitromex and its collaborators much success; I am convinced that their incorporation to Mohawk will open up new opportunities and will allow them to accelerate the development of the business”, said Jorge Rada, general director of GIS.
GIS is a Mexican company with operations in six countries in North America, Europe and Asia, which at the end of 2022 consolidated a solid financial position.