Mohawk Industries, Inc. Announces Agreement To Purchase Pergo
CALHOUN, Ga., Oct. 29, 2012 /PRNewswire/ -- Mohawk Industries, Inc. (NYSE: MHK) announced today that it has entered into an agreement to purchase Pergo, a manufacturer of laminate flooring, for $150 million in cash. Pergo's sales in 2011 were approximately $320 million in the U.S. and Europe. The business is expected to be accretive in the first year. This transaction is expected to close no later than first quarter of 2013 and is subject to customary governmental approvals and closing conditions.
Pergo is a leading manufacturer of premium laminate flooring with the most recognized brand in the U.S. and Europe. Pergo has been a leader in laminate flooring technology, including unique patents on design and installation methods. Pergo operates manufacturing facilities in Sweden and the U.S.
In commenting on the acquisition, Jeffrey S. Lorberbaum, Chairman and CEO, stated, "Pergo is a leader in laminate flooring in the U.S. and Nordic countries with premium value added strategies. This acquisition complements our specialty distribution network with Pergo's strength in the U.S. DIY channel. In addition, Pergo leverages our geographic position and provides opportunities to enhance Unilin's patent portfolio. The combination of the entities offers significant opportunities to optimize the assets of both companies while enhancing the design and product performance of both brands."
Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words "could," "should," "believes," "anticipates," "expects," and "estimates," or similar expressions constitute "forward-looking statements." For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; inflation in raw material prices and other input costs; energy costs and supply; timing and level of capital expenditures; timing and implementation of price increases for the Company's products; impairment charges; integration of acquisitions; international operations; introduction of new products; rationalization of operations; tax, product and other claims; litigation; and other risks identified in Mohawk's SEC reports and public announcements.
Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk provides a complete selection for all markets of carpet, ceramic tile, laminate, wood, stone, vinyl and rugs. These products are marketed under the premier brands in the industry including Mohawk, Karastan, Lees, Bigelow, Durkan, Mohawk Home, Daltile, American Olean, Unilin and Quick-Step. Mohawk's unique merchandising and marketing assists the consumer in creating exquisite floors to fulfill their dreams. Mohawk provides a premium level of service with its own trucking fleet and local distribution in the U.S. Mohawk's international presence includes operations in Australia, Brazil, China, Europe, Malaysia, Mexico and Russia.
SOURCE Mohawk Industries, Inc.