Eliane and Portobello merge

A memorandum signed on 24 December marks the start of a major agreement between two leading players in the Brazilian ceramic industry. Eliane and Portobello, longstanding tile manufacturers based respectively in Tijucas and Cocal do Sul in the state of Santa Catarina, have entered into a memorandum of intent establishing the terms and conditions for a merger that will create a group with 4,000 employees and sales of US $650 million.

The memorandum was signed by CEOs Edson Gaidzinski Jr. of Eliane and Cesar Gomes Jr. of Portobello, and if approved by the Administrative Council for Economic Defense CADE, will be finalised during the first quarter of 2012. The resultant group will rank amongst the world's top five ceramic tile producers. The two companies are highly complementary in terms of their products and markets and enjoy a strong combined presence nationally and in more than 70 countries worldwide. In 2011 they produced 60 million sq.m of tiles.

"We are focusing on growth," commented Edson Gaidzinski. "In terms of production and consumption, the Brazilian tile industry is second only to China, which poses a constant threat. For this reason we need to improve our competitiveness in both the domestic and export markets."

The newly-formed company will have a new name and will maintain its shares in the Novo Mercado segment of BMF & BOVESPA. The brand names Eliane and Portobello will continue to operate independently without any significant changes in terms of production, marketing and distribution.