The Dixie Group Sale of its Susan Street Facility and Initiation of Stock Buyback Program

Dalton, Ga. -- The Dixie Group reported the sale of its Susan Street facility, and approximately 10 acres of surrounding property located in Santa Ana, Calif., to the CenterPoint Properties Trust for a net purchase price of approximately $37.2 million. Concurrent with the sale of the property, The Dixie Group and the CenterPoint Trust entered into a ten-year lease agreement, whereby Dixie Group will lease back the property at an annual rental rate of $2.1 million, subject to annual rent increases of 2.0%. Under the lease, The Dixie Group has two consecutive options to extend the term of the Lease by five years.

Completion of the sale was a condition to the implementation of the company’s stock repurchase program, pursuant to which the company is authorized to purchase up to $5.9 million of its shares between completion of the sale and March 2020.