Mohawk Industries, Inc. Completes Acquisition of Unilin Holding NV
01 November 2005 - 8:21AM
PR Newswire (US)
CALHOUN, Ga., Oct. 31 /PRNewswire-FirstCall/ -- Mohawk Industries,
Inc. (NYSE:MHK) today announced that it has completed the
acquisition of Unilin Holding NV, a leading manufacturer and
marketer of laminate flooring products based in Belgium. For 2004,
Unilin had sales in U.S. GAAP of approximately euro 823.3 million
(US$988.0 million), operating income after including other income,
of euro 198.9 million (US$238.7 million) and depreciation and
amortization of euro 45.1 million ($54.1 million). Historical
depreciation and amortization will change for purchase accounting
adjustments. The Unilin audited financial statements for the year
ended December 31, 2004 and the ten months ended October 31, 2005
are required to be filed with the SEC by mid- January. The total
value of the acquisition, net of cash, is approximately euro 2.2
billion (US$2.6 billion) and is being financed with debt.
Commenting on the acquisition, Jeffrey S. Lorberbaum, Chairman and
Chief Executive Officer of Mohawk stated, "With the acquisition of
Unilin, Mohawk has strengthened its market position as a total
flooring company. As we did through the acquisition of Dal-Tile in
early 2002, we have further diversified our product base,
distribution strategy and geographical footprint through the
addition of Unilin. Over the past few months, we have been
impressed by Unilin's operating team and the strength of the
Quick-Step strategy, as well as the company's attractive growth
prospects going forward. Laminate flooring is exceptionally popular
in Europe and is rapidly gaining market share in the U.S." Mr.
Lorberbaum continued, "Unilin's experience in the European flooring
market and its relationships with retailers will contribute
invaluably to the Company. Unilin also boasts a growing share of
the U.S. market, supported by its expanded production capacity and
modern HDF board plant in North Carolina. Mohawk plans to continue
supporting the Quick-Step brand through the existing distribution
structure and customer base while still pursuing the introduction
of new complementary brands and products. Mohawk's extensive
relationships will help Unilin accelerate growth and market share
in the United States. Unilin also has leading positions in roofing
and other wood-based panels in Europe. "The merger is anticipated
to have an accretive impact on earnings for 2006, and we believe
the combination of the businesses creates a number of synergistic
opportunities, including: (1) accelerating Unilin's market share
gain in the U.S., (2) leveraging Mohawk's brands and distribution,
and (3) leveraging Unilin's U.S. production capability. We are
happy to welcome Unilin to the Mohawk family and are excited about
the prospects for the Company's future success. The combination of
Mohawk and Unilin will continue to strengthen the Company." Certain
of the statements in the immediately preceding paragraphs,
particularly those anticipating future performance, business
prospects, growth and operating strategies, proposed acquisitions,
and similar matters, and those that include the words "believes,"
"anticipates," "forecast," "estimates," or similar expressions
constitute "forward-looking statements." For those statements,
Mohawk claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. There can be no assurance that the forward-looking
statements will be accurate because they are based on many
assumptions which involve risks and uncertainties. The following
important factors could cause future results to differ: changes in
economic or industry conditions; competition; raw material and
energy prices; timing and level of capital expenditures;
integration of acquisitions; introduction of new products;
rationalization of operations; litigation; and other risks
identified in Mohawk's SEC reports and public announcements. Mohawk
is a leading supplier of flooring for both residential and
commercial applications. Mohawk offers a complete selection of
tufted and woven broadloom carpet, ceramic tile, laminate, wood,
stone, vinyl, rugs and other home products. These products are
marketed under the premier brands in the industry, which include
Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile and
American Olean. Mohawk's unique merchandising and marketing systems
assist our customers in creating the consumer's dream. Mohawk
provides a premium level of service with its own trucking fleet and
over 250 local distribution locations. DATASOURCE: Mohawk
Industries, Inc. CONTACT: Frank H. Boykin, Chief Financial Officer
of Mohawk Industries, Inc., +1-706-624-2695 Web site:
http://www.mohawkind.com/
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