Jeff Lorberbaum, Mohawk's Chairman & CEO

Calhoun, Ga.— Mohawk Industries has agreed to purchase a plant from Propex Fabrics located in Roanoke, Ala., that produces secondary carpet backing. The plant employs approximately 470 people. Financial terms of the transaction were not disclosed.

Jeff Lorberbaum, Mohawk’s chairman and CEO, said the mill bought the Propex plant that was configured to meet Mohawk’s. “Propex Fabrics has long been a major supplier of secondary carpet backing to Mohawk. It has earned a reputation as a solid manufacturing organization for quality, service and value. We look forward to to welcoming its valued employees into the Mohawk family and becoming part of these communities.”

The acquisition by Mohawk is the company’s most recent involving a carpet backing plant. In February of 2005, the mill purchased the assets Wayn-Tex, then operator of manufacturing facilities in Waynesboro and Hillsville, Va., and employer of approximately 550 people ( FCNews, Feb. 21/28). This, combined with the new capacity in Alabama, will supply most of Mohawk’s product mix requirements, noted Lorberbaum. Both facilities produce backing (primary and secondary) as well as Optiback, Mohawk’s premium carpet backing.

Optiback is three times denser than traditional carpet backing, he noted, yielding greater strength, better warranties and easier installation. “The advantage to the softer, denser backing is less risk of wall or baseboard damage during installation. The smoother backing also means that installation is easier because installers don’t have to exert as much effort to move the carpet around on the floor.” Mohawk Optiback is used with the mill’s better goods.

At the time of the Wayn-Tex purchase, Lorberbaum noted, “We perceive the Wayn-Tex acquisition as another opportunity to add additional backward integration, and at the size we are at, we [feel] we can operate it efficiently. We expect to utilize all the capacity internally.

“Wayn-Tex was owned by a fund, and it was looking for a buyer,” he continued. “Over a period of years, we’ve had multiple conversations and [the people there] just concluded everyone was ready. It was our first acquisition of this type, involving carpet backings.”

For more information on Mohawk and its products, call 800-241-4900.
—Louis Iannaco