Mohawk Will Buy Spano Invest
On Monday, flooring manufacturer Mohawk Industries announced that it has entered into an agreement to purchase Belgian panel board manufacturer Spano Invest NV for $168 million in cash.
Spano, a manufacturer and distributor of chip and melamine boards used in furniture construction and as building materials, is believed to have produced $231 million in revenues in 2012. As such, Mohawk is paying approximately 0.73 times annual sales for the Belgian company -- a steep discount to Mohawk's own valuation of 1.23 times sales.
Mohawk advises that it expects to close the purchase in Q2 2013 and believes Spano will be "slightly accretive" to its profits in the first full year post-merger.
Mohawk shares closed up 0.3% Monday at $102.77.
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