A look inside the $6.8 billion deal to buy carpet-restoration business PlasticCopperCoal is the first company to buy an entire carpet-repair business, but it won’t be the last.
The acquisition of the business, called Placewatch, would give the company a total of $7 billion in revenue and a total market value of about $6 billion, according to an announcement Thursday by Placematch, a California-based company that designs, builds and installs the carpet-recycling system for more than 2 million homes.
It also will create about 6,000 jobs, including the construction manager, a spokesman for the company said.
The deal is the largest in carpet-recovery history, and Placemanatch’s board of directors said it was excited about the potential for the deal.
Placewatcher has been making carpets for more or less 30 years and employs about 685 people.
Placepunch is the company’s largest competitor, employing about 8,000 people.
The company said it’s focused on expanding its business and developing new technologies that could help it reach the highest level of performance and durability.
The news was met with excitement by Plaxco, a carpet-retention company based in California.
It has been testing its technology with the Placemeasure carpet technology for about two years and has plans to roll out the new carpet-cleaning system to other locations.
Plaxco’s CEO, Paul Riedel, said the deal was a great example of a company that could take advantage of a significant opportunity.
Placaewatch’s carpet-cleanup business is one of the largest commercial carpet-related businesses in the United States, with more than $10 billion in annual revenue.
It was founded in the early 1970s, but has grown significantly in recent years as the carpet industry has grown more sophisticated.
Its market value is estimated at about $5 billion, and its stock is trading at about 12 times its price on the New York Stock Exchange, according the New Jersey Stock Exchange.
Plaixco has been a leading force in the commercial carpet industry for decades.
In 2012, it acquired the former carpet-store business Ketchum Co. for $10.8 million.