Mohawk Completes Unilin Acquisition

Calhoun, GA, October 31, 2005--Mohawk Industries, Inc. 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."

Related Topics:Daltile, Mohawk Industries

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