BALTA GROUP TO BUY THREE
DOMO FLOORCOVERING PLANTS

SINT-BAAFS VIJVE, BELGIUM – Balta Group has agreed to buy several manufacturing facilities from Domo Group. The purchase includes broadloom carpet, needle felt, carpet tile and yarn and fiber making facilities in Belgium, according to Balta.  All production activities and employment will continue at current levels at the plants, according to both companies. 

"This acquisition will enhance Balta's product range which already consisted of broadloom carpet, rugs and laminate flooring with the addition of carpet tiles and needle felt," Balta said in a statement announcing the purchase.

"This is a splendid opportunity for us. Until today Balta had no activities related to carpet tiles and needle felt,” said Jules Noten, chief executive officer of Balta Group. “This will open up a whole new world of products and distribution channels.”

Balta Group will retain the identities of the various business units including Balta, Domo Floorcoverings, ITC and Balterio, as well as the brands Berclon, Line A, Captiqs, Modulyss and Balterio.

"The sale of the floor covering activities to Balta will allow for the continuation of strategy for market-oriented product ranges and brands such as Modulyss and Captiqs" said Gregory De Clerck of Domo Group. "These past few years Domo Group's strategy has been aimed at creating a diversified company portfolio consisting of independent businesses each with their own strategies."

The transaction is expected to be concluded by the end of September 2010 following approval by the competition authorities.

The Domo artificial grass production site in Sint-Niklaas and Xentrys nylon carpet yarn production site Leuna are not involved in this transaction. Balta is granted use of the Domo brand name within the floor coverings industry until the end of 2013.

08.17.10