Mohawk Industries Inc. has signed a deal to acquire Pergo, a manufacturer of laminate flooring, in cash deal valued at $150 million.

Pergo reported worldwide sales in excess of $320 million in 2011. The first laminate flooring product, known as Perstorp Golv GL80, was produced and sold in Sweden in 1980. The name Pergo was actually introduced nine years later.

Perstorp sold off its flooring division as the separate company named Pergo, which became a subsidiary of Pfleiderer, based in Germany.

The name Pergo has almost become synonymous with laminate flooring over the past 30 years. The company holds a variety of patents related to the design and installation of the product.

The company introduced the product on the U.S. market in 1994 and opened a U.S. plant in Garner, N.C., two years later. It still operates manufacturing facilities in Sweden.

“This acquisition complements our specialty distribution network with Pergo’s strength in the U.S. DIY channel,” Mohawk Chairman and CEO Jeffrey S. Lorberbaum said in a prepared statement. “In addition, Pergo leverages our geographic position and provides opportunities to enhance Unilin’s patent portfolio.”

Lorberbaum said that the acquisition of Pergo offers the best chance to take advantage of the best assets of both Mohawk and Pergo while at the same time improving the design and product performance of both labels.

This transaction is expected to close no later than first quarter of 2013 and is subject to customary governmental approvals and closing conditions.