Carpet and tile maker

Mohawk Industries

(MHK) - Get Report

said Monday that it will buy Belgian-based

Unilin Holding NV

for $2.6 billion (euro 2.2 billion), including net cash balances of $33 million (euro 28 million).

The acquisition follows Mohawk's 2002 purchase of ceramic tile manufacturer Dal-Tile. "The acquisition of Unilin represents the second major step in diversifying into a total flooring company. The acquisition of Dal-Tile in 2002 made Mohawk the largest provider of ceramic in the U.S.," said Mohawk Chairman and CEO Jeffrey S. Lorberbaum in a company press release.

Unilin, a European laminate flooring maker, has over 2,400 employees and operates primarily in Belgium, France, the Netherlands and the U.S. The company's products are marketed under the Quick-Step brand through independent distributors.

According to a company press release, the deal, which was unanimously approved by Mohawk's board of directors and Unilin's shareholders, is expected to close in the fourth quarter of 2005 and is subject to regulatory approvals and other closing conditions.

Mohawk expects the deal to be slightly accretive before synergies in 2006. Shares closed Friday at $82.20.