Investor Presentaiton
October 12, 2021
APPENDIX: M&A TRANSACTIONS
GBM
The ceramic tiles industry should continue to consolidate over the next decades. During the last twenty years, the largest ceramic tiles players in the world (Mohawk and LAMOSA) have been very active in
consolidating a globally fragmented industry, with both companies accounting for only 3-4% of the global production capacity. Since industry conditions have improved and most industry players hold a healthy
balance sheet, we expect to keep seeing M&A transactions over the next 12 to 18 months.
Nobody knows best what is cooking in the pot than the chef itself. It is interesting to see that most acquisitions completed over the last two decades have taken place at an EV/EBITDA multiple pre-synergies
in the range of 8-9x-except for Daltile International, where Mohawk might have seen incremental synergies from the scale and strategic footprint that Daltile's Mexico/US operations offered. In our view, the
valuations that the largest industry players have paid reflect just an approximate value of global ceramic tile assets. And, more importantly, they are valuations that market players (target companies) are willing
to accept for an asset that doesn't have the global scale that companies like Mohawk or LAMOSA possess and or the characteristics that stand them apart from the rest.
Sample of Ceramic Tiles M&A Transactions
2003
2007
2013
2016
2017
2018
2019
2020
2021
Acquiring Company
w
MOHAWK
LAMOSA
W
MOHAWK
LAMOSA
Duratex
MOHAWK
Duratex
LAMOSA
LAMOSA
INDUSTRIES, INC.
INDUSTRIES, INC.
INDUSTRIES, INC.
Target Name
daltile
PORCELANITE
diseña tus sueños
MARAZZI GROUP
SAN LORENZO
Ceusa
eliane
CECRISA
euro
Roca
cerámica
Amount
US$1.8 billion
US$807 million
US$1.5 billion
US$230 million
US$75 million
US$250 million. US$258 million
US$33 million
US$260 million
EV/EBITDA
10.3x
8.3x
8.1x
7.7x
8.9x
-9x
8.8x
-8x
~6.5x
Size of Target
30% of Mohawk 110% of LAMOSA 20% of Mohawk
23% of LAMOSA
3% of Duratex
2% of Mohawk
13% of Duratex
2.5% of LAMOSA
22% of LAMOSA
Plants of Target
US/Mexico
Mexico
US/Europe
Colombia/Peru/
Argentina
Brazil
Brazil
Brazil
Colombia
Brazil/Europe
LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 65View entire presentation