Mohawk Industries Inc. has entered into an agreement to purchase Pergo, a manufacturer of laminate flooring, for $150 million in cash. Pergo’s sales in 2011 were approximately $320 million in the U.S. and Europe. The business is expected to be accretive in the first year. This transaction is expected to close no later than first quarter 2013 and is subject to customary governmental approvals and closing conditions.
In commenting on the acquisition, Jeffrey S. Lorberbaum, chairman and CEO, stated: “This acquisition complements our specialty distribution network with Pergo’s strength in the U.S. DIY channel. In addition, Pergo leverages our geographic position and provides opportunities to enhance Unilin’s patent portfolio. 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.”