Florim makes acquisition in high end of the market

Apr 14, 2003

Florim makes acquisition in high end of the market14/04/2003 - Florim, the Fiorano-based Group which includes the companies Floor Gres, Rex Ceramiche Artistiche, Cerim Ceramiche and Geo, has recently purchased an approximately 34% share in IslaTiles S.p.A., a company based in Viano (RE) which closed fiscal 2002 with a turnover of 21 million euro and specialises in sales to the high end of the market (in particular Canada and the USA). The majority shareholding of IslaTiles remains with the company's longstanding management, thereby guaranteeing continuity in the company's operative management.

The operation is part of the Florim Group's strategy of increasing its stake in companies with a strong commercial presence, particularly in the North American market where per capita tile consumption is increasing steadily. In the United States, the Florim Group's subsidiary Florim USA registered sales of more than 80 million dollars in 2002 (the in-focus section contains an info sheet on Florim USA). According to Claudio Lucchese, Chairman, and Antonio Mingarelli, Managing Director of Florim, "IslaTiles is a typical example of an outstanding, dynamic company with high potential for growth in the ceramic manufacturing area's current scenario." As a new shareholder, Florim plans to provide support to the current staff to secure further expansion of IslaTiles.

The Florim Group has also announced the initial results for fiscal 2002. Consolidated turnover with the American companies (Florim USA, the sales company Florim USA 2 and the distribution company Impo Gazatile) was about 296 million euro and estimated net profits about 8 million euro. Cash Flow is estimated at about 48 million euro, equivalent to 16.2% of turnover (compared to 43 million euro in 2001, 14.7% of turnover). Florim UsaFlorim Usa

Now in its third year, Florim USA continues to expand. "Florim USA now represents 25-30% of the Florim Group's world market," declared Claudio Lucchese, the Group's Chairman, to the US magazine Floor Covering News. "Over the next few years the company should reach a share of 50% thanks to the opportunities offered by the American market." Sales of the US subsidiary rose by 10% in 2002 and products with ISO certification set a company sales record. "We are investing in the product technologies and customer service improvements that are needed to establish a leadership position in the American market," Lucchese added. Florim has also invested more than US $25 million in the American factories since 2000.

At the present time $2 million are earmarked for expansion of the warehouses, which will increase the area of the facility by about 9000 sq.m. "We are already the company with the largest factory in America," declared Mirco Migliari, newly appointed president and CEO of Florim USA. "Following the expansion, which will be completed in the second quarter of 2003, Florim USA will have more than 28,000 sq.m of covered space, including new offices and areas for improved personnel distribution."