Paul Murfin, co-CEO of IVC US, with Mohawk president Brian Carson
[Chicago] Mohawk’s acquisition of IVC firmly plants the company in the resilient business. But it also gives IVC access to channels and markets, such as commercial, where it doesn’t have the deep penetration that Mohawk does.
The benefits to the buy, including shared values and strengths, are many, said Brian Carson, president of Mohawk Industries, and Paul Murfin, co-CEO of IVC US, during a sitdown interview with FCW this week here at NeoCon.
For Mohawk, IVC gives the company both sheet vinyl and luxury vinyl tile (LVT) manufacturing — including the new facility in Dalton that produced its first product this week.
“We want to grow in the LVT category,” explained Carson, adding that Mohawk identified the resilient category, both fiberglass sheet and LVT, as a growing market both here in North America but also globally.
And, Murfin added, IVC has a significant presence in Europe and the Eastern Block. “We’re not just a North American company, we’re a global company,” noted Murfin.
Added Carson, “When you look at (IVC’s) manufacturing capabilities, their technical capabilities, their design capabilities, their strong distribution on both sides of the ocean and their track record for success...if we are going to get in this business, we might as well get in it with the best.”
And Mohawk will bring its considerable strengths to IVC as well. “Our logistics, our brands, our design capabilities as a company, our customer reach and ability to service the commercial markets, which is a big area where these products participate, it was natural to have two great companies come together and share strengths,” said Carson.
It will also open up channels of distribution to IVC. “Mohawk has enormous presence in every channel. First and foremost, Mohawk will give us quick access to all of those channels,” said Murfin, adding, “One area that has been vacant for us is commercial and now we have access to that.”
In fact, here at NeoCon, the fruits of the aquisition are already visable in Mohawk’s showroom. “We don’t let the grass grow under our feet. We are hitting the ground running,” noted Carson.
Mohawk also brings to the table a full portfolio of brands that Murfin said IVC will be able to leverage. “Product development, branding and differentiation — it’s going to be key to making this thing take off. The portfolio of brands gives us more ways to differentiate,” said Murfin. He also said that IVC, as a lean operation, will now be able to also take advantage of Mohawk’s resources such as Internet strategy.
And logistics is another area where IVC will see benefits. “The ability to move product around,” noted Carson.
IVC also fits within Mohawk’s overall hard surface strategy, he said. “Hard surface is growing rapidly in the U.S. and around the world. Not all categories are growing equally. We want to focus on the ones that are growing and where we can differentiate with branding. We value differentiation and innovation because with products, merchandising and branding, we can allow (our customer) to differentiate themselves with our product.”
Mohawk purchased IVC for $1.2 billion in cash and stock. Revenues of IVC in 2014 were approximately $735 million.