US-based Mohawk Industries has reached a preliminary agreement to acquire a carpet manufacturer. At issue in this one is New Zealand manufacturer Bremworth.
Mohawk, which operates globally in flooring, also owns carpet manufacturers Godfrey Hirst and Feltex in New Zealand. The transaction is still subject to approval by shareholders and competition regulators. Bremworth specialises in broadloom wool carpet. This reports Flooring Square.
© Mohawk | Bremworth
According to Rob Hewett, Bremworth's board chairman, the offer is the best option for shareholders after a search for potential buyers. "It offers security of value at a significant premium to those who have supported the company in challenging years," Rob said in an interview with Radio New Zealand.
Rob emphasises that Mohawk Bremworth's scale and capital will enable it to compete more strongly with imported carpets in New Zealand and Australia. In addition, he sees international growth opportunities and a potentially positive impact on demand for New Zealand wool, which could also strengthen regional economies.
As Mohawk already owns rival brands Godfrey Hirst and Feltex, the deal is being closely monitored by regulators. In particular, the Australian Competition Authority is expected to look critically at the market impact. The companies aim to complete the acquisition in the first half of next year.
© Mohawk
Source: Flooring Square
