US flooring giant Mohawk moves to acquire Bremworth

Thursday, 2 October 2025

After a year of speculation, Bremworth has confirmed a deal with US flooring company Mohawk Industries’ NZ subsidiary Floorscape.

Bremworth investors are poised to collect a premium on their shares after the listed carpet-maker confirmed a deal to be bought by US flooring giant Mohawk Industries.

On Tuesday, Bremworth announced it had entered a scheme implementation agreement with Mohawk’s New Zealand subsidiary, Floorscape. The US-based company also owns Kiwi carpetmakers Godfrey Hirst and Feltex.

Shareholders are expected to receive between $1.05 and $1.15 per share, made up of a 75 cents cash payment from Floorscape and another 30c to 40c per share from Bremworth’s own cash reserves.

The company expected to return between $21 million to $28m to shareholders ahead of the scheme’s implementation, which was set to be completed in the first half of next year subject to shareholder and regulatory approval.

That was a premium of up to 135% on Bremworth’s share price before the company launched a strategic review in February and almost twice its most recent closing share price of 62c on Wednesday.

After the announcement, shares were up 47% to 91c.

The result followed months of speculation about whether the carpet-maker could be sold, a board coup and the departure of several executive members including chief executive Greg Smith, with Craig Woolford now serving as interim chief.

The company kicked off a strategic review of its ownership structure in February under its previous board chaired by George Adams which was carried on by Bremworth’s new board, now chaired by Rob Hewett.

Bremworth chair Rob Hewett took over from former chair Greg Smith earlier this year.

Woolford said the acquisition would expand its retail footprint in Australia and New Zealand. 'This is about creating certainty and new opportunities for everyone connected with Bremworth.”

“Our focus throughout has been on securing the best possible outcome for shareholders,” Hewett said.

He said the board had engaged with a range of potential buyers before settling on Mohawk and unanimously recommended the scheme: “The offer provides certainty of value at a meaningful premium.”

The deal would give Bremworth access to Mohawk’s “capital and scale” to compete more effectively in Australia, Europe and North America, as well as in Aotearoa, Hewett said.

“With Bremworth on a more sure financial footing, this should also accelerate our innovation pipeline in both wool-based and synthetic flooring solutions.”

Earlier this year, Hewett told The Post the company was “in a process” but did not confirm if buyers were at the table.

Its most recent result for the six months to the end of December showed a loss of $8m, down 386% from the previous period while revenue was up 8% to $42m.

The company’s full-year result was expected last month, but it announced on Wednesday that the result was not ready, and had not met NZX rules. Trading would be suspended if the results were not posted by October 7.

Shareholders will vote on the scheme once it receives regulatory clearances and a tax ruling. An independent adviser’s report will be released ahead of the vote.