Mohawk Industries, Inc. Announces Purchase of Wood Flooring Assets



    CALHOUN, Ga., June 26 /CNW/ -- Mohawk Industries, Inc. (NYSE:   MHK)
announced today that it has entered into an asset purchase agreement with
Columbia Forest Products for wood flooring plants and working capital.  The
assets include two pre-finished solid plants and one engineered wood plant in
the U.S. and an engineered wood plant in Malaysia.  These plants currently
represent approximately $180 million of annual sales and have been Mohawk's
largest supplier of wood.  The plants are currently experiencing losses but
the business is expected to be accretive after the first year as we implement
our integration plan.  Losses following closing are not expected to be
material to Mohawk's results.  This transaction is expected to close in the
third quarter of 2007 and is subject to customary governmental approvals and
closing conditions.
    In commenting on the acquisition, Jeffrey S. Lorberbaum, Chairman and
CEO, stated, "Columbia has been an important supplier to Mohawk since we began
distributing wood products.  These are excellent assets which are operating at
about half their potential capacity.  Over the next two years we will invest
some additional capital to achieve a low cost position in the market.  We will
continue to support the Columbia brands sold through independent distributors
and enhance the product portfolio.  The acquisition enables us to fully
participate in the $2.4 billion wood flooring market which is anticipated to
grow at 6% to 8% long term.  In the U.S., Mohawk will now have the number one
or two position in the wood, carpet, ceramic, laminate, stone, and rug
markets.  This is another key element in Mohawk's strategy to offer a total
floor covering solution to our customers."

    Certain of the statements in the immediately preceding paragraphs,
particularly anticipating future performance and business prospects constitute
"forward-looking statements" under the Private Securities Litigation Reform
Act of 1995.  There can be no assurance that the forward-looking statements
will be accurate because they are based on many assumptions, which involve
risks and uncertainties, including our ability to successfully implement our
integration plan, and other risks identified in Mohawk's SEC reports and
public announcements.

    Mohawk is a leading supplier of flooring for both residential and
commercial applications.  Mohawk offers a complete selection of carpet,
ceramic tile, laminate, wood, stone, vinyl, rugs and other home products.
These products are marketed under the premier brands in the industry, which
include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American
Olean, Unilin and Quick Step.  Mohawk's unique merchandising and marketing
assist our customers in creating the consumers' dream.  Mohawk provides a
premium level of service with its own trucking fleet and over 250 local
distribution locations.





For further information:

For further information: Frank H. Boykin, Chief Financial Officer of 
Mohawk Industries, Inc., +1-706-624-2695 Web Site: http://www.mohawkind.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890