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…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
