Burlington Industries
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January 20, 2007, 6:51 pm
Filed under: Industrial Conglomerates
Filed under: Industrial Conglomerates
WL Ross & Co. acquired diversified manufacturer Burlington Industries in Nov-03 for $614m. It immediately sold on the crown jewel, the carpet division, for $352m. This implied the following multiples: 140% of sales for 2002 (US$263m), 110% of average three year sales (US$321m), 9.6x EBITA for 2002 (US$36.8m, 14.0%) to Mohawk Industries (MHK).
Deducting this from the $614m consideration left $262m for the remaining businesses: apparel fabrics and interior furnishings. This implied a valuation of 35% of sales for 2002 (US$740m).
In Feb-03 management had announced an agreement for Burlington Industries to be acquired by Berkshire Hathaway for $579m.
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