Mohawk acquires wood flooring assets
June 26, 2007-- Home Textiles Today,
Calhoun,Ga.– Floor coverings manufacturerMohawk Industries has entered into an asset purchase agreement with Columbia Forest Products for wood flooring plants and working capital.
The assets include two pre-finished solid plants and one engineered wood plant in the United States and an engineered wood plant in Malaysia . The plants currently generate approximately $180 million in annual sales and have been Mohawk's largest supplier of wood, the company said.
Mohawk said the plants have been losing money for Columbia , but that will turn around once they are integrated into Mohawk’s operations. The transaction is expected to close in the third quarter this year.
Mohawk chairman and ceo Jeffrey Lorberbaum said, "These are excellent assets which are operating at about half their potential capacity. Over the next two years we will invest some additional capital to achieve a low-cost position in the market. We will continue to support theColumbiabrands sold through independent distributors and enhance the product portfolio.”
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