Berkshire Hathaway, the holding company run by Warren Buffett, announced plans to take a majority stake in Georgia-based carpet maker Shaw Industries (SHX) .

Berkshire said it will buy between 80.1% and 86% of the outstanding shares of Shaw for $19 per share in cash. That's a 56% premium over Shaw's Tuesday close of $12.19. Trading in Shaw has been halted all morning.

Buffett has a reputation as a value investor, and Shaw, with a price-to-earnings ratio of 8.2, fits the bill. Analysts set Shaw's earnings growth at 15%, according to

I/B/E/S

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.

Shaw shares were recently up 53%, after spending most of the morning halted. Shares of

Mohawk

(MHK) - Get Report

, its closest competitor, also spiked higher on the news. Mohawk was lately trading up 16.3%.