The carpet sector is in difficulties because of the effect of the economic crisis, together with a weak pound, on the most important market: the UK. Balta was founded in 1964 by the late Paul Balcaen and sold in 2004 by his son to the British venture capital group Doughty Hanson for €600 million. Doughty Hanson had hoped to sell the company in 2007, but only one bidder emerged, and the price was too low. In 2008 the crisis took hold, and the collapse of the British market brought about a 25% drop in sales in the market overall, although Balta’s sales there went up 9%.

In a rare interview given at the weekend to De Standaard, director-general Jules Noten and financial director Carl Verstraelen explained they were currently “cutting away the fat”, before setting out on a campaign of consolidation in order to make the carpet sector more attractive again, and turn Balta into a saleable proposition.

Balta currently runs at full capacity in fitted carpets, but new capacity will only come via mergers and takeovers. And target companies must have something further to offer: “We’re barely active in the contract market,” referring to carpets for hotels, offices and other large-scale customers. “We don’t yet have any artificial grass, carpet tiles or needle felt in our range.” The two executives decline to name names, but among those companies that might appear on Balta’s shopping list are: Balsan, the French wing of Associated Weavers; Lano, which is strong in the contract market; and the Belgo-American McThree Carpets. 