Godfrey Hirst's Canterbury Spinners building in Christchurch. Photo / File
Global flooring manufacturer Mohawk Industries has agreed to buy Australasian carpetmaker Godfrey Hirst, known domestically for acquiring failed rival Feltex more than a decade ago.
No price was disclosed in the transaction, which is expected to be completed in the first half of next year, although the Australian Financial Review
reported the deal was said to be worth A$500 million.
Godfrey Hirst's New Zealand division more than doubled net profit to $11 million in the year ended June 30, 2016 on a 13 per cent increase in revenue to $174.6 million with about 41 per cent of sales to related parties, according to accounts filed with the Companies Office.
The Australasian carpet maker's sales were about US$334 million in the year ended June 30, 2017, Mohawk said. Georgia, US-based Mohawk already has manufacturing sites in Australia and New Zealand through its Premium Floors and Floorscape subsidiaries, which distribute the New York Stock Exchange-listed firm's vinyl tile, laminate and wood products in the region.
"Mohawk's strategy in Australia and New Zealand has been to build a leading position in the flooring market," chair and chief executive Jeffrey Lorberbaum said.
