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 closed at $80.27 on Friday in a 52-week range of $49.02 to $83.35. U.S. markets are closed today due to Hurricane Sandy.
Paul Ausick
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