Mohawk Industries has purchased the Wear-Dated residential fiber brand from Solutia. As part of the deal, Mohawk will assume ownership of the Wear-Dated Reward for Life retail sales incentive and marketing co-op programs. The commercial fiber brand, Ultron, will remain with Solutia. Financial terms were not disclosed.
Tom Lape, president of Mohawk's residential division, said the Wear-Dated brand is an important addition to Mohawk's portfolio. “Wear-Dated is a valuable brand asset and among the top five consumer-recognized names in carpet,” he said, adding, “The purchase of the Wear-Dated brand complements our brand strategy and long-term vision for our company.”
The acquisition arises out of what was originally a partnership four years ago, when Mohawk announced a long-term strategic alliance with Wear-Dated, along with 3M's Scotchgard. During that time, more than 80 Mohawk carpet products were designed and constructed using Wear-Dated fiber and the new Scotchgard Protector Advanced Repel Technology.
"That's what makes this acquisition so beautiful: it's a natural evolution," said Christine Whittemore, director of in-store innovation for Wear-Dated. "Mohawk is excited about the brand."
She noted that Solutia was selling the Wear-Dated brand as part of its "nylon strategic alternatives process." The process, announced last year, is aimed at restructuring the company's nylon business with an eye toward reducing costs. The process was triggered following Solutia's emergence from bankruptcy early last year.
The sale to Mohawk does not include any plants or manufacturing assets, but does include the Wear-Dated retailer incentive and co-op programs. "A lot of work was done in getting the Wear-Dated retail incentive program aligned with Mohawk's retial incentive program," she toldNFT."It's a very powerful tool to be able to focus attention on products and brands."
As for fielding questions from retailers at Surfaces, she said she "anticipates goodwill, enthusiasm and curiosity."
"Above all, this acquisition will mean beautiful new products, and products are the name of the game," she added.
Mohawk buys Wear-Dated brand, programs
February 3, 2009