Making big news on the final day of NeoCon, publicly held flooring giant Interface has announced a definitive agreement to acquire Nora Systems, the Weinheim, Germany-based manufacturer of commercial rubber floor covering systems, in a stock purchase transaction valued at approximately $420 million.
The purchase is significant, as it instantly transforms Interface into a major player in the $1 billion rubber flooring category. “The acquisition is expected to accelerate our growth strategy by expanding our product portfolio and extending our reach in the performance flooring category of resilient flooring,” says Interface CEO Jay Gould.
Privately held by investment firm Intermediate Capital Group, Nora marks 80 years in business this year, with annual revenues of $280 million.
The acquisition is being financed with a term loan facility through Bank of America. Once the transaction formally closes, the purchase is expected to increase Interface’s gross profit margin by 30 to 50 basis points, while improving adjusted earnings per share by $0.03 to $0.06. Interface also provided overall guidance for fiscal 2018, with the company’s existing flooring business targeting 3% to 5% organic sales growth, and gross profit margin of 39% to 39.5%.