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Permira-backed Marazzi to be sold to Mohawk for $1.5bn

21 Dec 2012

Permira-backed ceramics maker Marazzi Group has reportedly agreed to be sold to US strategic Mohawk Industries for about $1.5bn.

The deal is expected to close in the first quarter of 2013 according to the firm, which confirmed the information to Reuters.

Permira and Private Equity Partners bought a 33 per cent stake in the Italian tiles firm in 2004 in an all-cash deal.

The former had a 28 per cent holding while PEP held 5 per cent.

PEP exited its entire stake during an IPO in 2007 in which the company listed 28 per cent of its stock for €296m.

Mohawk had revenues of $1.16bn last year and will have EBITDA of about €145m this year, giving the deal roughly an eight times purchase multiple.

Last month European buyout firm Permira gave investors two more months to commit to its latest buyout fund ahead of a first close, after gathering just a third of its €6.5bn target after almost a year and a half on the road.

The firm anticipated a tricky fundraise amid the global financial crisis when it launched Permira V last summer, aiming for a target well below the €9.6bn it collected for its previous fund in 2006.

But a letter to investors reveals the scale of the problems Permira is facing, having only received about €2bn of commitments towards a now unspecified target, a source told AltAssets.

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