ICS Magazine

Mohawk to Buy Burlington Industries' Lees Carpet Unit

July 22, 2003
CALHOUN, Ga. (Dow Jones)--Mohawk Industries Inc. agreed with W.L. Ross & Co. to acquire the assets and assume certain liabilities of Lees Carpet, a unit of bankrupt Burlington Industries Inc.

Financial terms weren't disclosed.

In a press release Monday, Mohawk said Ross - which has agreed to purchase certain assets and assume some liabilities of Burlington in connection with its exit from Chapter 11 bankruptcy - included in its bid a provision for Lees Carpet to be sold to Mohawk if Ross is successful in the auction process.

Burlington, which filed for bankruptcy protection in December 2001, plans to auction its assets on July 28 and has said it doesn't expect any recovery for common shareholders. The company decided on the auction after its planned $579 million sale to Berkshire Hathaway Inc. fell apart in February.

A hearing to approve the auction is set for July 31.

For the second quarter ended March 29, Burlington's carpet business reported sales of $58.8 million. The assets were worth about $109.4 million at that date.