The world's leading flooring company Mohawk looks set to acquire Bremworth in a bid expected to strengthen demand for New Zealand strong wool and support farmgate returns.

Premium wool carpet and rug manufacturer Bremworth today, October 2, announced that it has entered into a scheme implementation agreement with Floorscape Limited, a wholly owned subsidiary of Mohawk Industries, which operates the Floorscape premium hard flooring business and owns carpet manufacturer Godfrey Hirst NZ.

In the proposed scheme agreement, Floorscape Limited has agreed to acquire 100% of the shares in Bremworth with the scheme expected to deliver shareholders an estimated total consideration in the range of $1.05 to $1.15 per share, subject to market conditions and business performance.

This represents a premium of up to 135% to Bremworth’s share price prior to commencement of the strategic review announced in February 2025, and 85% on its most recent closing price of 62 cents on October 1, giving it a market capitalisation of $43.7 million prior to the announcement of the scheme.

Bremworth chair Rob Hewett said the agreement delivers a favourable outcome for shareholders while also creating long-term strategic benefits for NZ manufacturing, wool growers and regional communities.

“I am pleased to present this agreement on behalf of the board following a comprehensive strategic review and extensive engagement with potential buyers that was a process already in place.

“We [the new board] picked it up and kicked it along the way with our focus throughout about securing the best possible outcome for shareholders.

“This agreement reflects the strength of Bremworth’s brand and its future potential. It is a positive outcome for shareholders who have stood by the company through some very challenging years.”

Looking beyond shareholder returns, Hewett said the acquisition by Mohawk, a business with significant revenues, strong balance sheet and operations in more than 170 countries, represents a significant vote of confidence in NZ manufacturing.


Source: farmersweekly.co.nz