Jul 05, 2005. /Lesprom Network/. Mohawk Industries, Inc. announced on Monday that it has entered into a definitive agreement to acquire Unilin Holding NV, a leading manufacturer and marketer of laminate flooring products based in Belgium for approximately Euro 2.2 billion ($2.6 billion), including net cash balances of Euro 28 million ($33 million). Unilin had annual sales in Belgian GAAP of approximately Euro 837 million ($1.0 billion) and EBITDA margins in excess of 29%. Mohawk Chairman and Chief Executive Officer Jeffrey S. Lorberbaum stated: “Laminate flooring has demonstrated exceptional growth and market share gains in Europe over the last decade and the 2004 U.S. market of $1.2 billion, which grew at 24% from 2003, is currently anticipated to grow in excess of 15% per annum. Unilin is a leader in high-end laminate with strong positions in both the U.S. and Europe. The market position and high margins of Unilin reflect the superior performance of the current operating management team who has developed one of the best recognized brands in Quick-Step." The acquisition, which was unanimously approved by Mohawk's Board of Directors and Unilin's shareholders, is expected to close in the fourth quarter of 2005 and is subject to regulatory approvals and other closing conditions. Lehman Brothers acted as exclusive financial advisor to Mohawk and has provided a fairness opinion regarding the transaction. Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of tufted and woven broadloom 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 and American Olean. Mohawk's unique merchandising and marketing systems assist our customers in creating the consumer's dream. Mohawk provides a premium level of service with its own trucking fleet and over 250 local distribution locations. Unilin is a leading manufacturer, distributor and marketer of laminate flooring in Europe and the United States. Unilin is one of the leaders in laminate flooring technology, having developed the patented Uniclic glueless installation system and a variety of other groundbreaking technologies. The company also produces insulated roofing and other wood-based panels. Headquartered in Belgium, the company has over 2,400 employees located principally in Belgium, France, the Netherlands and the United States. Unilin sells its laminate flooring products marketed under the Quick-Step brand through independent distributors.