Mohawk Industries Inc. has completed its previously announced acquisition of Dal-Tile International Inc.
Under the terms of the agreement, Mohawk paid $11 in cash and .2213 shares of Mohawk common stock for each outstanding share of Dal-Tile common stock. The transaction is valued at approximately $1.8 billion.
The deal included roughly $710 million in 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, Mohawk'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. Mohawk estimates its debt-to-total capitalization ratio at approximately 41% now that the deal has closed.