The Dixie Group executes definitive agreement to sell certain assets to Shaw

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.