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 Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.
