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Mohawk buys Pergo for $150 million

Calhoun, Ga. – Mohawk Industries has entered into an agreement to purchase Pergo for $150 million in cash. The transaction is expected to close no later than first quarter of 2013 and is subject to customary governmental approvals and closing conditions.

Pergo’s sales in 2011 were approximately $320 million in the U.S. and Europe. It has the most recognized laminate flooring brand in the U.S. and Europe, and 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.

“Pergo is a leader in laminate flooring in the U.S. and Nordic countries with premium value-added strategies,” said Jeff Lorberbaum, chairman and CEO. “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.”