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For Release: Immediately
Contact: John D. Swift, Chief Financial Officer
MOHAWK INDUSTRIES, INC. COMPLETES PURCHASE
OF ASSETS FROM CROWN CRAFT'S WOVENS DIVISION
Calhoun, Georgia, November 14, 2000 - Mohawk Industries, Inc. (NYSE:MHK) today
announced it completed the previously announced acquisition of certain assets of
the Wovens Division of Crown Crafts, Inc. Under the agreement, Mohawk paid
approximately $36,000,000 in cash for substantially all of the fixed assets and
inventory of this division.
The former Wovens Division of Crown Crafts is believed to have the largest
jacquard weaving capacity in the woven textile products industry and is a leader
in the woven throw, bedspread and coverlet markets. Products in this division,
which has annual sales of approximately $85,000,000, include a wide range of
products such as throws, bedspreads and pillows.
Commenting on the purchase, Jeffrey S. Lorberbaum, Chief Operating Officer,
stated, "The purchase of the Wovens Division business of Crown Crafts will
provide opportunities to strengthen our market position. In addition to
providing growth for existing product lines in our Home Products division, this
acquisition will give us the ability to expand into other product lines. All of
the manufacturing facilities purchased are in close proximity to our existing
sites in northwest Georgia, providing opportunities to take advantage of
manufacturing and administrative synergies. We will also be able to leverage our
existing national distribution with these products, allowing additional
synergies in the future. We anticipate the acquisition will have no impact on
earnings in 2000 and will be accretive in the second half of 2001. Our
shareholders should realize increased value in their Mohawk investment with this
purchase enhancing our position as the low cost leader in the industry. Both
Mohawk and Crown Crafts are dedicated to achieving a smooth transition for our
employees, customers and suppliers."
Certain of the statements in the immediately preceding paragraphs, particularly
anticipating future financial performance, business prospects, growth and
operating strategies, proposed acquisitions, new products and similar matters,
and those preceded by, followed by or that otherwise include the words
"believes," "expects," "anticipates," "intends," "estimates," or similar
expressions constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended. For those statements,
Mohawk claims the protection of the safe harbor for forward-looking
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statements contained in the Private Securities Litigation Reform Act of 1995.
Those statements are based on assumptions regarding the Company's ability to
successfully integrate the purchase of the Crown Crafts assets. These or other
assumptions could prove inaccurate and therefore, there can be no assurance that
the "forward-looking statements" will prove to be accurate. Forward-looking
statements involve a number of risks and uncertainties. The following important
factors affect the future results of Mohawk and could cause those results to
differ materially from those expressed in the forward-looking statements:
materially adverse changes in economic conditions generally in the carpet, rug
and floorcovering markets served by Mohawk; competition from other carpet, rug
and floorcovering manufacturers; oil price increases; raw material prices;
timing and level of capital expenditures; the successful integration of
acquisitions including the challenges inherent in diverting Mohawk's management
attention and resources from other strategic matters and from operational
matters for an extended period of time; the successful introduction of new
products; the successful rationalization of existing operations; and other risks
identified from time to time in the Company's SEC reports and public
announcements.
Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for
residential and commercial applications. The Company designs, manufactures and
markets carpet in a broad range of colors, textures and patterns and is widely
recognized through its premier brand names, some of which include "Mohawk,"
"Aladdin," "Bigelow," "Custom Weave," "Durkan," "Galaxy," "Harbinger," "Helios,"
"Horizon," "Image," "Karastan," "Mohawk Commercial," "World," and "Wunda Weve."
Mohawk offers a broad line of area and washable rugs branded by Karastan,
Aladdin, Newmark & James and American Rug Craftsmen and decorative throw
blankets, placemats, pillows and chairpads branded by American Weavers. Mohawk
also offers a complete laminate product line and distributes carpet padding,
wood products and ceramic tile. The Company markets its products primarily
through retailers and dealers.
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