Florida Tile

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Florida Tile is a U.S.-based manufacturer of porcelain and ceramic tile. It is one of the United States' largest producers of glazed and unglazed porcelain wall, floor tile and ceramic wall tile. [1] It is also an importer and distributor of ceramic and porcelain wall and floor tile, natural stone, glass and metal tiles.

Contents

Established in 1954, the company originally intended to fill a market niche. However, as the company grew, its product line gradually expanded and it became known for innovation, being responsible for a number of firsts in the ceramic tile industry.

In 2003, the company employed 950 people and had annual revenue of around $120 million. It manufactures its products in Lawrenceburg, Kentucky, and distributes products via its distribution center there to a network of 60 distributors, 35 company owned branches, and through big box and third party channels. [2]

History

The Sikes years

Florida Tile was established in Lakeland, Florida when Leon Sikes Sr. and his sons James "Jimmie" Sikes and Leon Sikes Jr. purchased a run-down tile plant for $8,000 in March 1954. [3] At the time the company produced one specialty trim shape of tile that was difficult to find. As the industry grew away from small format, extruded, and two-tone effect floor tiles, Florida Tile began to adopt new technology to manufacture the increasingly complex products the market demanded.

Within 20 years it became the U.S.'s second largest manufacturer of ceramic tile, and the company changed its name to Sikes Corporation in 1972 to reflect the addition of a carpet manufacturing plant in Lawrenceburg. [4] Jimmie Sikes became the Chairman of the Board during this time.

However, the venture into carpet manufacturing proved to be ill-advised for the company. Changes in the carpet business left the Sikes Corporation with new plants and old technology. By the mid-1970s, it had suffered a $13 million loss and was close to having a negative net worth. Kelly Norton, Florida Tile's VP of Marketing at the time, speculated that, "The only reason the banks didn't foreclose on us was because they didn't know what to do with an old tile plant." [3]

The company began to again thrive by the late 1970s, and would do so for many years, even after the death of Sikes from a massive heart attack in 1982. The 1980s were a good time for Florida Tile - several times it was named on the Forbes list of best small businesses, and twice listed by USA Today as one of the best performing stocks of the decade. [5]

Shifting ownership

As the 1980s wound down, much of the original leadership began to retire. By 1990, Florida Tile was sold to Premark International Inc. for $201 million.

In 1999, Illinois Tool Works bought Premark with a stock purchase. ITW later identified Florida Tile as a non-core business and hired CS First Boston to sell the company in March 2002. The auction was unsuccessful as Florida Tile was underperforming at the time. [2]

By November 2003, Florida Tile was purchased by Milestone Merchant Partners' investment fund, MMP Capital Partners. This was followed by an announcement in early 2004 that the Lakeland tile plant was to be shut down. Then-CEO Matt Galvez cited a shift in consumer preference from basic wall tile to designer products manufactured by the company's facilities in Kentucky and Georgia. [3]

In 2006, Florida Tile was sold to the Panariagroup of Italy in a deal brokered by Murry Gunty of Blackstreet Capital. The result was a $25 million investment in Florida Tile, resulting in the opening of a state-of-the-art production line in Lawrenceburg, Kentucky, in September 2007. Through continued investments, this facility now has the technology to produce large sized, through-body porcelain and uses high-speed printers to create tile patterns.

Industry firsts

In anticipating and meeting demand through the use of technology, Florida Tile marked a number of firsts within the United States and within the industry.

Green initiatives

Florida Tile was actively engaged in environmental issues as far back as the late 1970s and early 1980s, when it hired a full-time environmental engineer.

It was also the first to attain the Greenguard Environmental Institute certification for all of its products. This certification states that their product line produces no emissions of hazardous chemicals known as VOCs (volatile organic compounds) in indoor environments. [7]

As part of their CARES program, Florida Tile began its partnership in 2006 with Tile Partners for Humanity. Through this group, Florida Tile has been able to donate material to local and national organizations such as Mountain Re-Source and Operation Compassion.

In recent years, Florida Tile also began to be honored for its efforts to manufacture products using environmentally friendly processes. In 2011, it was recognized by the College of Agriculture at the University of Kentucky for its achievements in resource sustainability practices. That same year, it was honored by the Kentucky Energy Alliance for its commitment to energy management, promoting sustainable practices and creating an impact at state, regional and global levels. [13] In 2012, Florida Tile received Green Squared Certification for all tile lines produced in its Kentucky plant. [14] [15]

Humanitarian contributions

During the 2010 Coverings trade show, Florida Tile was given the Award of Excellence from West Virginia-based Mountain Re-Source. The recognition was for the company's humanitarian efforts in Appalachia and its response to the 2010 Haiti earthquake. At the time of the recognition, Florida Tile had donated $600,000 worth of material to Mountain Re-Source. [16] [17]

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References

  1. ↑ "Florida Tile Company Profile". Allbusiness.com. February 1, 2003. Retrieved August 3, 2011.
  2. 1 2 "Florida Tile Acquisition Company". blackstreetcapital.com. February 2006. Archived from the original on November 14, 2010. Retrieved August 3, 2011.
  3. 1 2 3 Toothman, Mary. "Shuttering of Florida Tile a Sad Loss Archived 2016-04-15 at the Wayback Machine ." Lakeland Ledger. March 14, 2004.
  4. ↑ "FLORIDA TILE (P2010) 1954-2004". Lakeland Public Library. Retrieved April 2, 2010.
  5. ↑ "Closing of Florida Tile's Lakeland Plant End". floordaily.net. March 14, 2004. Retrieved August 3, 2011.
  6. 1 2 3 4 "Florida Tile Announces Corporate Relocation". AEC Newsroom. July 31, 2009. Retrieved November 6, 2011.
  7. 1 2 "Florida Tile Inc. Announces GREENGUARD Certification". Market Wire. November 28, 2007. Retrieved August 4, 2011.
  8. ↑ "Green Tile: A Perfect Fit for the Sustainable, Greenbuilding Marketplace". Stone BTB Marketplace. May 5, 2008. Retrieved August 4, 2011.
  9. ↑ "Florida Tile, Inc". Coverings. 2008. Archived from the original on March 31, 2012. Retrieved October 4, 2011.
  10. ↑ "Florida Tile -- Changing Lives One Floor at a Time". Market Wire. September 17, 2009. Retrieved August 11, 2011.
  11. ↑ "Florida Tile launches Hi-Def Porcelain". Tile Magazine. October 8, 2009. Retrieved August 11, 2011.
  12. ↑ "Florida Tile honored with inaugural CTDA Supplier of the Year Award". May 21, 2013. Retrieved June 20, 2014.
  13. ↑ "Florida Tile Gets EcoHonors". December 4, 2011. Retrieved April 8, 2014.
  14. ↑ "Florida Tile porcelain now Green Squared certified". May 29, 2012. Retrieved April 8, 2014.
  15. ↑ "Kentucky-made Florida Tile now Green Squared certified". June 15, 2012. Retrieved April 8, 2014.
  16. ↑ "Florida Tile honored for humanitarian efforts". May 20, 2010. Retrieved August 4, 2011.
  17. ↑ "Florida Tile Wins Award for Humanitarian Efforts". Floor Daily. May 25, 2010. Retrieved August 4, 2011.
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