Companies and Brands

Mohawk Acquires Sweden’s Pergo Flooring (MHK)

courtesy Mohawk Industries Inc.
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.

Paul Ausick

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.