The transaction is expected to be slightly accretive before synergies in 2006. Although we will not realize significant synergies in the first year, we believe that there exist many opportunities to improve the combined business including: (i) accelerating the market penetration of Unilin's products, (ii) leveraging Mohawk's brands and distribution, (iii) leveraging Unilin's U.S. production capability and (iv) providing an avenue of growth for Mohawk in Europe.
The combination of Mohawk, Unilin and Dal-Tile will continue to strengthen our position in the market and lead to a stronger company.
The acquisition, which was unanimously approved by Mohawk's Board of Directors and Unilin's shareholders, is expected to close in the fourth quarter of 2005 and is subject to regulatory approvals and other closing conditions. Lehman Brothers acted as exclusive financial advisor to Mohawk and has provided a fairness opinion regarding the transaction.
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.
Belgium based Unilin is a leading manufacturer, distributor and marketer of laminate flooring in Europe and the United States. Unilin is one of the leaders in laminate flooring technology, having developed the patented Uniclic glueless installation system and a variety of other groundbreaking technologies. The company also produces insulated roofing and other wood-based panels.
marketing@alchempro.com
