 |
 |
||||||
[March 2002]
Mohawk Industries Completes Dal-Tile Acquisition to Create World's Largest Floor Covering Company
Mohawk Industries Inc (Calhoun, GA, USA) has completed the previously announced acquisition of Dal-Tile International Inc. The total value of the acquisition, completion of which was confirmed on 20 March 2002, was said to have been US$1.8 billion which included US$710 million of cash, approximately 15 million shares of Mohawk Industries common stock and stock options together valued at around US$920 million as of closing, and repayment or assumption of around US$200 million of Dal-Tile's debt.Mohawk's President and CEO, Jeffrey Lorberbaum, said: "The Dal-Tile merger creates the largest floorcovering manufacturer and distributor in the world with the largest ceramic tile operation in the U.S. and the second largest carpet and rug operation. Dal-Tile adds approximately $1 billion in annual sales of ceramic tile and stone products offering the broadest selection of products and the most recognized brands in the industry.
"The Dal-Tile distribution channels, which include over 200 sales service centers, independent distributors and home center retailers, offer synergistic opportunities to increase sales, leveraging Mohawk's existing distribution channels with Dal-Tile's. The exceptional financial performance of Dal-Tile over the last four years reflects the superior business and growth strategy of the high quality management team. We plan to keep the operating management team intact going forward."
He added: "Although we estimate the merger will have no significant impact on earnings in 2002, we expect slight accretion in 2003 with more significant earnings improvements in future years when the merger synergies are more refined and Dal-Tile is completely assimilated with Mohawk."
ENDS