This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Floor Trends logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Floor Trends logo
  • Home
  • Magazine
    • Current Issue
    • Digital Edition
    • Archives
    • Subscribe
  • News
    • Breaking Flooring News
    • Show & Event Coverage
  • Floor Coverings
    • Carpet
    • Resilient
    • Tile & Stone
    • Hardwood
    • Laminate
    • Specialty
    • Area Rugs
    • Residential Flooring
    • Commercial Flooring
    • Installation
    • Products
  • Business Insights
  • Web Exclusives
    • TISE Spotlight
  • Columns
  • Multimedia
    • Podcasts
    • Videos
    • Webinars
    • Photos
    • Quiz
    • Interactive Spotlights
  • Directories
    • Buyer's Guide
    • Wood Flooring Guide
  • More
    • eNewsletter
    • Market Research
    • Wood Flooring Directory
    • Buyer’s Guide
    • Calendar of Events
    • Associations
    • Custom Content & Marketing Services
    • Store
    • Classifieds
  • Talkfloor
  • Contact
    • Contact Us
    • Advertise
Home » Mohawk to buy Dal-Tile
Breaking Flooring News

Mohawk to buy Dal-Tile

November 20, 2001
Reprints
No Comments
CALHOUN, Ga. and DALLAS –- Under terms of a “definitive agreement,” Mohawk Industries will purchase Dal-Tile International in a transaction valued at approximately $1.663 billion, including the repayment of approximately $261.7 million in Dal-Tile's debt.

The merger agreement calls for Dal-Tile stockholders to receive approximately 50% of the proceeds in cash and 50% in stock. This formula equates to $11 in cash and 0.2414 shares of Mohawk common stock for each outstanding share of Dal-Tile common stock. The merger agreement provides that the exchange ratio increase from 0.2414 up to 0.2716 shares if the Mohawk stock price is between $41 and $36.45, and decrease from 0.2414 to 0.2213 shares if the Mohawk stock price is between $50.12 and $54.67. Based on the closing price of Mohawk stock on Nov. 19, Dal-Tile shareholders would receive equivalent value of $23.10 per share in cash and Mohawk stock.

The merger, which was unanimously approved by the boards of both companies, is subject to stockholder approval at each company, regulatory approvals and other customary closing conditions. The cash portion of the transaction will be financed through a combination of existing Mohawk credit facilities and new debt. The transaction is estimated to be completed in the first quarter of 2002.

"The Dal-Tile merger gives us the opportunity to expand our hard surface business and become a leader in the ceramic tile sector,” said Jeffrey S. Lorberbaum, Mohawk president and CEO. “Their Daltile and American Olean brands are two of the most respected brands in the industry. The strong sales growth and operating margins of Dal-Tile over the last four years reflect the superior performance of the current operating management team. We look forward to bringing Dal-Tile into the Mohawk family and to the strategic growth opportunities this merger offers.”

Lorberbaum also said two persons designated by Dal-Tile would likely be named to the Mohawk board and the Dal-Tile operating management team would be left intact.

"Over the past four years we have achieved constant improvements in sales, earnings and cash flow,” noted Jacques R. Sardas, Dal-Tile chairman and CEO. “The proposed merger represents the ideal culmination of our efforts and the dedication of all our employees, as well as the support we received from our stockholders, customers, lenders and suppliers. The proposed merger will benefit Mohawk's and Dal-Tile's stockholders, customers and employees."

subscribe to Floor Trends

Related Articles

Mohawk to Expand Dal-Tile Operations in Tennessee

Dal-Tile Corp. Focuses On Unique Needs of Buying Groups

Mohawk completes Dal-Tile acquisition

Mohawk names Chris Wellborn as COO, Dal-Tile top exec will continue expansion

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • eNewsletter
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

Eddie Bauer outlet

Fashion Forward: The Revel Woods Eddie Bauer Collaboration

Mannington-logo

Mannington Mills to Acquire Phenix Flooring and Pharr Fibers and Yarns

logos

Suppliers Respond to LVT Tariff Exemption

Shepherd's Field Children's Village

Real Wood Floors on a Mission

Mohawk-logo

Mohawk Industries Announces Q3 Financial Results

TalkFloor videos and podcasts

Poll

Customer Service

In our latest issue, Tom Jennings discusses the elements of good retail service. He says quality service is a differentiator and one that customers will gladly pay more for. Do you believe this to be true?
View Results Poll Archive

Products

Tiling Floors - DVD

Tiling Floors - DVD

Ceramic tile is a versatile and popular material for all kinds of floors.

See More Products

FT Flooring Buyer's Guide

Floor Trends Magazine

FT November 2019 cover

2019 November

In the November 2019 issue of Floor Trends, find out how flooring manufacturers are using creative marketing to connect with consumers. Also in this issue, see some of the latest wood flooring products from Bruce Hardwood and American OEM.
View More Create Account
  • Resources
    • List Rental
    • Survey And Sample
    • Flooring Group
    • Web Exclusives
    • Polls
    • Privacy Policy
  • Want More
    • Connect
  • Subscribe
  • Advertise With Us
    • Advertise

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing