Mohawk Industries to buy Marazzi for $1.5 billion

(AP) Mohawk Industries Inc., which makes residential and commercial flooring, is buying Marazzi Group for about $1.5 billion to expand its ceramic tile business.

Mohawk says Marazzi, which sells tile in more than 100 countries, posted revenue last year of about $1.16 billion. Two private equity funds Permira and Private Equity Partners and the Marazzi family are selling the company, which is based in Italy.

Mohawk posted revenue of more than $4.3 billion in the first nine months of the year. The Calhoun, Ga., company says it will fund the purchase with cash and stock. It expects the transaction to close in the first quarter and to add to earnings next year.