Color Tile agreed to merge with General Felt.

Under terms of the agreement, which has been approved by Color Tile’s board, General Felt Industries will acquire the Houston-based firm’s common stock at $31.50 per share, according to a news release. In accordance with the merger agreement, a newly formed subsidiary of New York-based General Felt will within one week commence a tender offer for all shares of Color Tile common stock at the net cash price. The total value of the merger is valued at about $300 million. The offer is contingent upon the tender of a majority of the outstanding shares of Color Tile common stock.