Mohawk's portion of the purchase price for the Lees Carpet division is estimated to be approximately $352 million subject to certain adjustments. The completion of the transaction is estimated to close in the fourth quarter and is subject to customary approvals.
Assuming current commercial conditions persist, the acquisition is estimated to be slightly accretive in 2004 after amortization of intangible assets and other normal acquisition costs.
Jeffrey S. Lorberbaum, president and CEO stated, "We believe the financial strength of Mohawk along with our excellent employee relations history will add to the security and stability for Lees' employees. We look forward to making Lees a part of the Mohawk family so we can each contribute to the others' success.
"Lees will play a vital role in creating value for both our customers and shareholders as we continue our strategy of becoming a leader in all floorcovering categories," he added.