The acquisition of US carpet manufacturer Lexmark Carpet Mills by French flooring group Tarkett, announced in August, was completed at the beginning of October. The purchase agreement was signed at the end of August, but at that time the transaction was still subject to antitrust approvals and further regulatory reviews.
Tarkett intends to integrate Lexmark's operations into its Tarkett North America division. Paul Cleary, previously CEO of Lexmark, will assume the position of President Hospitality Business North America in Tarkett management.
Lexmark is a manufacturer of high quality carpet flooring primarily used in the hotel industry. The acquisition will make Tarkett one of the leading carpet suppliers to the North American hotel industry, according to Lexmark.
Tarkett expects the acquisition to have a direct positive effect on the EBITDA margin, which could improve by up to 50 basis points over the year as a whole once all synergies have been exploited. In fiscal 2017, Group EBITDA amounted to €135.0m and Adjusted EBITDA to €315.1m, respectively; the respective margins were 4.8% and 11.1%.