The Dixie Group Inc. has announced that it has executed a definitive agreement to sell certain of its assets that support its factory-built housing, needlebond and carpet recycling businesses to Shaw Industries Group Inc. Together these businesses generated sales of approximately $255 million during the last 12 months.

The proceeds from the transaction are expected to be approximately $180 million and will be used to reduce the company's debt. The sale is anticipated to be completed when the waiting period under the Hart-Scott-Rodino Act has expired, which could be as early as the end of Sept. 2003. While specific terms of the agreement were not disclosed, Dixie said closing was subject to normal contractual contingencies.

Daniel K. Frierson, chairman and CEO of the Dixie Group, commented, "The sale of these assets will allow us to substantially reduce our debt and fund growth of our tufted residential business through our Dixie Home brands and products and our high-end residential and commercial business through our Masland and Fabrica brands." The assets being sold include the group's yarn, tufting, dyeing, finishing, needlebond, distribution and logistics facilities in Calhoun, Ga., its needlebond facility in Dalton, Ga., and its carpet recycling facility in Lafayette, Ga.

Approximately 1,100 associates are employed in the facilities being sold, he said.