The largest U.S. maker of carpets and floor coverings, Mohawk Industries Inc. (NYSE: MHK) said on Monday that it would acquire Sweden's laminated flooring maker Pergo for $150 million in cash. The acquisition is expected to close in the first quarter of 2013 pending the usual governmental approvals and closing conditions.
Mohawk expects the acquisition to be immediately accretive to earnings. Pergo's 2011 sales totaled $320 million. Privately held Pergo operates manufacturing facilities in both Sweden and the United States.
Mohawk's CEO noted:
This acquisition complements our specialty distribution network with Pergo's strength in the U.S. DIY [do-it-yourself] channel. … 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.
Pergo virtually invented laminated flooring more than 30 years ago and has been a premium supplier of laminated flooring ever since.
Mohawk shares are inactive in premarket trading this morning and closed at $80.27 on Friday, in a 52-week range of $49.02 to $83.35.
Filed under: 24/7 Wall St. Wire, Consumer Product, International Markets, Mergers & Acquisitions, Mergers and Buy Outs Tagged: MHK