CALHOUN, Ga. — October 29, 2012 — Mohawk Industries, Inc. (NYSE: MHK) announced today that it 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 of 2013 and is subject to customary governmental approvals and closing conditions.
Pergo is a leading manufacturer of premium laminate flooring with the most recognized brand
in the U.S. and Europe. Pergo has been a leader in laminate flooring technology, including unique
patents on design and installation methods. Pergo operates manufacturing facilities in Sweden and
the U.S.
In commenting on the acquisition, Jeffrey S. Lorberbaum, Chairman and CEO, stated, “Pergo is
a leader in laminate flooring in the U.S. and Nordic countries with premium value added strategies.
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.”
Certain of the statements in the immediately preceding paragraphs, particularly anticipating
future performance, business prospects, growth and operating strategies and similar matters and
those that include the words “could,” “should,” “believes,” “anticipates,” “expects,” and
“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; inflation in raw material prices
and other input costs; energy costs and supply; timing and level of capital expenditures; timing
and implementation of price increases for the Company’s products; impairment charges; integration
of acquisitions; international operations; introduction of new products; rationalization of
operations; tax, product and other claims; litigation; and other risks identified in Mohawk’s SEC
reports and public announcements.
Posted on October 30, 2012
Source: Mohawk Industries Inc./PRNewswire
