Mohawk Industries to Acquire Unilin Holding NV
Mohawk Industries announced on July 4, 2005, that it has entered into a definitive agreement to acquire Unilin Holding NV, a Belgian manufacturer of laminate flooring products. The transaction is valued at approximately $2.6 billion.
Calhoun, Ga. – Mohawk Industries announced on July 4, 2005, that it has agreed to acquire Unilin Holding NV, a leading Belgian manufacturer and marketer of laminate flooring. The deal is valued at approximately €2.2 billion (US$2.6 billion), including Unilin's net cash balances.
The acquisition is positioned as Mohawk's second major step in diversifying into a comprehensive flooring company, following its 2002 acquisition of Dal-Tile, which made Mohawk the largest ceramic tile provider in the U.S. Mohawk's Chairman and CEO, Jeffrey S. Lorberbaum, highlighted laminate flooring's rapid growth, particularly in Europe and the U.S. market.
Unilin brings to Mohawk a strong presence in the European flooring market and established distribution channels through high-end specialty retailers. The company also holds a growing share in the U.S. market and is completing a new flooring plant expansion. Unilin is described as the only vertically integrated laminate producer in the U.S. with a modern HDF board plant.
Mohawk anticipates the acquisition will accelerate market penetration for Unilin's products, leverage Mohawk's distribution network, and provide growth opportunities in Europe. Unilin also contributes a wood-based panels business and patents for laminate manufacturing. The transaction is expected to close in the fourth quarter of 2005, subject to regulatory approvals and other closing conditions.