Mohawk to acquire Belgian laminate flooring maker - update 3

07/05/05 - newratings.com

NEW YORK, July 5 (newratings.com) – Carpet and tile manufacturer Mohawk Industries (MHK) Monday announced that it has agreed to buy Belgium-based Unilin Holding NV for $2.6 billion (€2.2 billion). The acquisition follows Mohawk Industries’ 2002 purchase of ceramic-tile maker Dal-Tile.

Georgia-based Mohawk Industries beat private equity firms that had also been weighing a purchase of Unilin, according to the Wall Street Journal. The acquisition would enable Mohawk Industries to expand its presence in the flooring segment. Unilin, a European laminate flooring maker, has over 2,400 employees and operates primarily in Belgium, France, the Netherlands and the US. Mohawk said that it would continue to offer Unilin's Quick-Step laminate flooring brand, and introduce new products. The deal, expected to be closed in the fourth quarter of 2005, has been approved by Mohawk’s board of directors and Unilin’s shareholders. Mohawk expects the deal to be marginally accretive before synergies in 2006. Unilin Holding will continue to be run by the company's current management team, Mohawk said.