Tarkett buys carpet maker Desso
Carpet manufacturer Desso is to become part of Tarkett after venture capital company Bencis Capital and Desso management agreed a takeover offer, in a deal which values Desso at up to €160m.
Although terms have not been disclosed, venture capital experts have said the deal gives Desso a enterprise value of €160m, seven years worth of profit.
Desso had sales of €202m in the past year, of which 13% came from residential carpet, 77% contract carpets and 10% sports surfaces. It has two plants in Holland and one in Belgium and employs about 820 employees.
Bencis acquired Desso in April 2011, buying the business from NPM Capital via its €375m Bencis Buyout Fund III, which typically makes equity investments of €10-€35m in Benelux companies with enterprise values of €25-€150m.
'We are very excited to join Tarkett with whom we share the same vision and entrepreneurial values, as well as a strong commitment to sustainability, both applying the Cradle to Cradle principles at each step of the product's life and supporting the development of the circular economy. Within the Tarkett group, we will be in a position to offer extended development opportunities to our customers and partners, with products that aim to improve people's wellbeing and ultimately their performance,' says Alexander Collot d'Escury, Desso ceo.
'The acquisition of Desso will enable Tarkett to accelerate its profitable growth strategy by targeting the European market of added value carpet for commercial and residential use, as well as innovative sports surfaces. This move will extend our product portfolio, offering our customers complementary and cutting-edge solutions, as well as extensive design expertise, says Michel Giannuzzi, Tarkett ceo.