Lone Star Funds has agreed to buy European carpets and rugs maker Balta Group. The sellers included Doughty Hanson. No financial terms were disclosed.
Lone Star Funds, a global private equity firm, have signed a definitive agreement to acquire Balta Group, the leading European carpets and rugs manufacturer, from Doughty Hanson, a European private equity firm, Filip Balcaen and Management for an undisclosed sum. The transaction is expected to close at the end of August.
Founded in 1964, Balta Group is a global market leader in mechanically-woven rugs and is the European market leader in wall-to-wall carpets. It also has a significant and growing market position in carpet tiles. The Balta Group has 3,300 employees across eight production sites worldwide, from which six are located in Belgium and two in Uşak Turkey. Furthermore the Group has distribution centres in Sint Niklaas, Belgium and Dalton, USA. Balta reported net sales of €520 million and EBITDA of €65 million in 2014.
Doughty Hanson and Filip Balcaen have been strong and dedicated backers of Balta Group, supporting the company’s strategy and its management team over several years, supporting the significant investments in Belgium, Turkey and the acquisition of Domo Floorcovering in 2010. Balta Group is now ideally positioned for the next stage of its development. Management feels Lone Star is the best partner to support the Group going forward.
Hendrik Deruyck, CEO of Balta said:
“We are delighted to be embarking on the next phase of our growth ambitions with Lone Star, who share our vision of driving profitable growth by delivering superior product design, creativity, quality and service for our customers. As the Company moves forward, I am confident that we will do so from a position of strength. We will continue to build on our successes by innovating, enhancing and growing our business globally through continued strategic investments in Belgium and Turkey aswell as through targeted acquisitions.”