TARKETT / SOMMER ALLIBERT
Mega merger in floor coverings / New firm based in Germany with sales of DEM 2.6bn
Another mega merger in the European floor coverings market is in the offing following the takeover by France's Gerflor SA (F-69627 Villeurbanne) of the HT Troplast (D-53839 Troisdorf) "Mipolam" business (PIE No 08, 1997). Tarkett AG (D-67227 Frankenthal) and Sommer Allibert SA (SAI, F-94278 Nanterre) plan to merge their activities in a complex transaction involving the stock markets and funds linked to investment bankers Goldman Sachs and Doughty Hanson.
Under the terms of the deal, Tarkett will acquire the French company's floor coverings business, exclusive of products for automobile interiors, for DEM 705m in cash. In return, SAI will take a 50% stake in Tarkett. The merged company, Tarkett Sommer AG, based at Frankenthal, will employ 8,800 and have annual sales of DEM 2.6 bn. This is about twice the size of Tarkett prior to the merger.
Sommer Alliberts floor coverings division produces a wide range of elastic floor coverings, carpeting and linoleum flooring, and had sales of around FRF 3.9bn (DEM 1.3bn) in 1996, along with operating profit before good will of about FRF 370m. Tarkett's 1996 group sales were flat at DEM 1.35bn, operating income before good will and other financial positions down nearly 7% to DEM 136m. Despite 8% higher sales, Q1 1997 operating profit declined 9% to DEM 28.5m.
Start of business has been pencilled in for Q3 1997 subject to approval by the companies' supervisory boards and cartel authorities in a number of countries. Trade names and marketing organisations of both firms are to be retained. Following the divestment of floor coverings, the French group plans to concentrate principally on automotive interiors. This business with European headquarters in Germany will trade in future as SAI Automotive AG (Friesstr. 26, D-60388 Frankfurt).
Under the terms of the deal, Tarkett will acquire the French company's floor coverings business, exclusive of products for automobile interiors, for DEM 705m in cash. In return, SAI will take a 50% stake in Tarkett. The merged company, Tarkett Sommer AG, based at Frankenthal, will employ 8,800 and have annual sales of DEM 2.6 bn. This is about twice the size of Tarkett prior to the merger.
Sommer Alliberts floor coverings division produces a wide range of elastic floor coverings, carpeting and linoleum flooring, and had sales of around FRF 3.9bn (DEM 1.3bn) in 1996, along with operating profit before good will of about FRF 370m. Tarkett's 1996 group sales were flat at DEM 1.35bn, operating income before good will and other financial positions down nearly 7% to DEM 136m. Despite 8% higher sales, Q1 1997 operating profit declined 9% to DEM 28.5m.
Start of business has been pencilled in for Q3 1997 subject to approval by the companies' supervisory boards and cartel authorities in a number of countries. Trade names and marketing organisations of both firms are to be retained. Following the divestment of floor coverings, the French group plans to concentrate principally on automotive interiors. This business with European headquarters in Germany will trade in future as SAI Automotive AG (Friesstr. 26, D-60388 Frankfurt).
15.06.1997 Plasteurope.com [19320]
Published on 15.06.1997