The transaction is not expected to result in a material net gain or loss. Daniel K. Frierson, chairman of the board of the Dixie Group, said the sale "will further strengthen our balance sheet and permit us to continue growing our higher-end carpet businesses."
The Dixie Group sells yarn production plant to Shaw Industries Group Inc.
December 8, 2003
The Dixie Group Inc. has executed a definitive agreement to sell its Ringgold, Ga., spun carpet yarn production facility to Shaw Industries Group Inc. for a cash purchase price of approximately $6.7 million. Proceeds from the sale, plus funds generated from working capital reductions, will be used to reduce debt under the company's senior credit agreement. While specific terms of the agreement were not disclosed, Dixie said the sale, which is subject to normal contractual contingencies, was expected to be completed within the next six weeks. Approximately 300 associates are employed in this facility.