Desso Enters US Market Through New Agreement With The Dixie Group

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^[1].

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1. Based on external sources and internal management estimates.

"Our success in the European market is driven by our focus on health and wellbeing given content by our innovation strategy based on creativity, functionality and Cradle to Cradle," says Alexander Collot d'Escury, CEO of Desso. "This led to successful products like the AirMaster and SoundMaster carpets and our Cradle to Cradle carpets including the Silver certified EcoBase backing. We expect these kinds of products to perform just as well in the North American market."

The Dixie Group, founded in 1920 is today one of the market leaders supplying the US market with high-end floor coverings. It reported annual revenue of $266 million for the FY2012 and has a 35% market share in the high-end segment of the broadloom carpet market in the US.

"Desso and Masland Contract share the same values of producing environmentally responsible flooring products that stand out in their design and functionality," says Daniel K. Frierson, Dixie Group CEO. "We look forward to these exciting new opportunities."

"We are delighted with the new partnership between Desso and the Dixie Group," says Alexander Collot d'Escury, CEO of Desso. "We share the same commitment to delivering stunningly designed, innovative products that provide added value for our customers. Our shared values around innovation, design and green principles will enable Desso to meet its goal of expansion into the US market and support our mutual growth in this high potential market."

Desso's corporate vision is based on its goal to 'make the floor work for our health and wellbeing' driven by its three pillared innovation programme: Creativity, Functionality and Cradle to Cradle. Since 2008 Desso has been dedicated to developing a far reaching business sustainability approach based on Cradle to Cradle principles, which encourage the development of products made from healthy materials, leading to safer and more effective recycling later. This approach underpins Desso's commitment to the circular economy, in which goods are recycled in a healthy way again and again.  

Combined with functionality and creativity, this enables Desso to produce market-beating products that help to improve health and wellbeing indoors. These include the DESSO AirMaster carpet which is specially designed to capture potentially harmful fine dust in its fibres; it has been proven to be eight times more effective than hard floors at retaining the fine dust and four times more effective than regular carpets^[2].

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2. Based on tests performed by GUI, with DESSO AirMaster® versus standard PVC hardfloor and versus standard structured loop pile carpet.

About DESSO^®

For more information please visit: http://www.desso.com

About the Dixie Group

For more information please visit: http://www.thedixiegroup.com