Under the terms of the acquisition agreement, Mohawk paid $11 in cash and .2213 of a share of Mohawk common stock for each outstanding share of Dal-Tile common stock. The total value of the acquisition is approximately $1.8 billion. The acquisition included approximately $710 million of cash, approximately 15 million shares of Mohawk common stock and stock options valued at approximately $920 million as of closing and the assumption of approximately $200 million of Dal-Tile's debt.
The acquisition was initially financed with a combination of a $600 million 364-day bridge credit facility, the company's existing revolving credit facility and its existing on-balance sheet asset financing securitization.
The company plans to repay the bridge credit facility after completion of the merger through a private placement of senior notes or other available means. After the completion of the acquisition, Mohawk estimates its debt-to-total capitalization ratio to be approximately 41%.