New Amtico owner vows to keep UK production
LVT manufacturer Amtico has been sold to diverse US flooring group Mannington Mills, for a reported £127m, with production set to continue in the UK.
'The acquisition of Amtico is an extremely exciting development for Mannington, as it not only brings a world class organisation into the Mannington family, but also expands the company's global market reach as well as the scope of its domestic manufacturing capabilities,' says Russell Grizzle, Mannington ceo.
Grizzle also said that Amtico will maintain its brand identity and become a Mannington subsidiary, and that operations at all Amtico locations – including Coventry – will continue.
Mannington Mills is one of the largest and oldest flooring manufacturers in the US. Founded in 1915, the fourth-generation, family-owned company manufactures residential and contract laminate, hardwood and porcelain tile floors, as well as contract carpet and rubber.
'In addition to increasing output and profits we have also brought jobs back to the UK and US from China, proving that there is a long-term future for manufacturing in the West,' says Jonathan Duck, Amtico chief executive. Sales reached £115m last year and Duck says production cost is now just 5% more than in China – a figure that used to be 40%.
'The Amtico story is a case study in what a business can achieve under private equity ownership.'
Although financial details were not disclosed, the Wall Street Journal says former owners AAC Capital UK and Electra Private Equity received £127m.