Shaw's nylon deal: Buys Anso and Zeftron brands, assures flow of raw materials

In a deal that stands to significantly enhance Shaw Industries' position in nylon carpet, the company said it has agreed to acquire Honeywell International's U.S. nylon carpet fibers business. Included are three nylon fiber manufacturing plants as well as the Zeftron nylon and Anso nylon brand names. In addition, the two companies agreed to a long-term deal that calls for Honeywell to supply Shaw with raw materials. Shaw will also acquire Honeywell's 50 percent stake in a recycling plant in Augusta, Ga., that was closed two years ago but is expected to reopen. Terms of the deal, which is expected to be finalized before the end of the year, were not disclosed.

The acquisition is expected to give Shaw a steady pipeline of raw material needed to make nylon carpet. Aside from acquiring Honeywell's nylon fiber manufacturing operations in Anderson, Clemson and Columbia, S.C., the multi-faceted transaction calls for Honeywell to supply Shaw with caprolactam and nylon resin, two intermediate chemicals used to make nylon fibers.