Mohawk Industries, Inc. announced that it has entered into a definitive agreement to acquire the IVC Group, which expands the company's position as the leading global flooring manufacturer. Mohawk is acquiring IVC for approximately $1.2 billion through a combination of cash and equity, the company said in a press release.

The IVC Group is a major manufacturer of sheet vinyl, luxury vinyl tile (LVT) and laminate, with operations in Europe and the United States and sales of approximately $700 million. The IVC Group was founded in Belgium in 1997 by Filip Balcaen, who is currently IVC's chairman and primary shareholder.

Jeff Lorberbaum, Mohawk's chairman and CEO, said, "There are many potential synergies between IVC and Mohawk in both Europe and the U.S. Our greatest opportunities are in LVT, which has increased globally around 18% in the past year. IVC is the fastest growing manufacturer of LVT in Europe, and their manufacturing expertise will help start up our new Belgian LVT factory faster. This new plant will allow IVC to further expand their European sales. In the U.S., LVT now represents about 5% of the total flooring market, and sales are projected to grow more than 15% annually through the end of the decade. Their new LVT plant in Dalton, Ga. will be one of the world's largest, most efficient production lines with leading technology and will position us to meet the rapidly growing U.S. market."

Mohawk Industries is the leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world.