Mohawk Industries, Inc. Announces Agreement To Purchase Pergo
CALHOUN, Georgia, 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.
ABOUT MOHAWK
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.