Mohawk Completes Acquisition Of Lees

Calhoun, GA, Nov. 11--Mohawk Industries, Inc. announced that it completed the acquisition of Lees Carpet for approximately $346 million subject to adjustment for working capital amounts at closing. These final adjustments are required to be complete within 45 days of closing. The acquisition was an asset purchase and was financed with existing credit facilities. The acquisition is expected to be slightly accretive in 2004. Jeffrey S. Lorberbaum, president and chief executive officer stated, "Lees Carpet is a leader in the commercial carpet industry with products that complement our existing commercial business. This acquisition will allow us to provide a broader selection of products and an even higher level of service for both Mohawk and Lees customers. Lees has one of the most respected sales forces in the industry and it has been very effective in the marketing of its products. The Mohawk and Lees teams have already made significant progress planning our future marketing strategies. Increased investments in Lees people and assets will improve our overall position in the commercial market. Additionally, many of the financial and administrative systems should be converted to Mohawk's soon after the closing. The manufacturing and operating systems are expected to be combined next year. "We have been very impressed with the operation of Lees. The company has creative, hard-working employees that have developed one of the most successful commercial carpet companies in the industry. The combination of these two strong companies will enhance our ability to meet all the needs of our customers."