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[November 2001]
Mohawk Industries and Dal-Tile Announce Merger
On 20 November 2001, Mohawk Industries Inc - a leading carpet and rug manufacturer, and Dal-Tile International Inc announced that had entered into a definitive agreement for Mohawk to acquire Dal-Tile. The merger, which was unanimously approved by the boards of both companies, is subject to stockholder approval at each company, regulatory approvals and other customary closing conditions.
Mohawk's President and CEO Jeffrey Lorberbaum said: "The Dal-Tile merger gives us an opportunity to expand our hard surface business and become a leader in the ceramic tile sector. With approximately $1 billion of annual sales through Dal-Tile's distribution channels of company-operated service centers, independent distributors and home center retailers, we will offer the most comprehensive line of ceramic tile and stone products in the industry.
"Their Dal-Tile and American Olean brands are two of the most respected brands in the industry. The strong sales growth and operating margins of Dal-Tile over the last four years reflect the superior performance of the current operating management team."
Dal-Tile is the largest manufacturer, distributor and marketer of ceramic tile in the USA and is also one of the largest in the world. Headquartered in Dallas, Texas, the company has approximately 8,000 employees at its facilities in North America.
This transaction is valued at approximately US$1.663 billion, including the repayment of approximately US$261.7 million in Dal-Tile's debt.
ENDS