CALHOUN.

CALHOUN, GA., AND DALLAS -- In a merger that creates a formidable giant in the floor-covering industry, the country's secondary largest carpet maker, Mohawk Industries, agreed forward Nov. 19 to purchase the nation's top ceramic-tile supplier, Dal-Tile. The nearly $17 billion deal includes cash, stock and $2617 million in assumed debt

The boards of the couple companies approved the merger unanimously, which is reckon uponed to be final in the first quarter of 2002 Mohawk said that it would add couple people, nominated by Dal-Tile, to its board, and Dal-Tile's management team would remain intact.

"The Dal-Tile merger gives us the opportunity to expand our hard-surface business and become a leader in the ceramic-tile sector," said Jeffrey s Lorberbaum, Mohawk's president and CEO who will stair up to lead the combined company after Dal-Tile's CEO Jacques Sardas, degrees down sometime next year.

"We will be able to take these brace sizable companies, because of better management of the couple companies as one, and give our customers more reasons to corrupt from us," Jonathan Swift, Mohawk's CFO said. "You become more important to your customers because you move more products, a better selection, better delivery and better quality."

The couple companies had been serving similar markets with different proceedss Over the past three years, Dal-Tile shifted its focus to strengthening its position in the residential market, where Mohawk is known to be strong

"Mohawk is of the best in residential distribution, and [with the merger] we will be able to leverage Mohawk's distribution strengths" said Dal-Tile CFO Chris Wellborn. "We were going to have to expand distribution facilities anyway in the residential market."

While Mohawk tenders a strong distribution channel, Dal-Tile has a brawny presence in Mexico -- a potentially lucrative international market that Mohawk has extended wanted to enter.

"We will identify the outcomes we think would be competitive in Mexico, and we will establish a mien there, either through [Dal-Tile' s] sales force or through adding additional sales staff," Swift said.

With 44 percent of Dal-Tile's production in Mexico alone, the ceramic tile supplier occupys more than 3,000 people there. Although mostly are production workers, Wellborn pointed not at home that the company has maintained a "strong management team" in Mexico. "We may be able to build forward that," he added.

Exactly what the sum of two units companies will end up building together has to this time to be determined, but company executives did say they do not wait for to realize significant synergies for at least a year.

Based in Dallas, Dal-Tile was fixed after World War II from Robert Brittingham, who sold it in 1990 Brittingham died last month Dal-Tile twitched in nearly $1 billion in reward in 2000, while Calhoun, Ga.-based Mohawk Industries had sales of $33 billion.

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