WAALWIJK, The Netherlands, February 10, 2014 /PRNewswire/ --
Desso, the global carpets, carpet tiles and sports pitches company announced that it has signed a letter of intent to enter into a joint venture with Masland Contract, a division of The Dixie Group, Inc. (NASDAQ: DXYN), a US floor coverings company. The intent is to build a comprehensive floor covering offering for the Hospitality market in the United States and international distribution.
Having signed the letter of intent, the parties anticipate working quickly to develop a mutually acceptable Joint Venture structure designed to accomplish their goals. Using nearly 250 years of combined manufacturing excellence, both companies will be able to provide more value in the marketplace with complementary product lines to supply a complete offering to any brand-conscious Hospitality environment.
In addition, the two companies announced that they will enter into a sales and distribution agreement permitting Masland Contract, a division of The Dixie Group, to be the exclusive distributor of some of Desso's high performance carpet tile products. This will allow Desso to gain wider distribution for its Cradle to Cradle product offering through Masland Contract, which offers highly designed products for the commercial carpet market and that has an extensive sales network in the US and Canada.A recognised leader in colour and design from the start, Masland Contract has become a preferred supplier for the architectural and design communities. It offers high style broadloom, modular and area rug products for corporate, hospitality, retail, education, government, and various other segments. Today, The Dixie Group is one of the fastest growing companies in the US carpet market. Similarly, Desso has continued to perform well based on its commitment to customer service, design, functionality and Cradle to Cradle. Desso's European market share in commercial carpets -its largest business division and where it applied Cradle to Cradle principles first - has grown strongly between 2007 and 2013 . --------------------------------------------------