In an effort to hold down costs and secure "greater financial flexibility," Interface Inc. said it has sold its European fabrics division, Camborne Holdings, for about $28 million. In addition, the Atlanta-based carpet maker plans to shutter a plant in East Douglas, Mass., and integrate those operations into a facility in Elkin, N.C.
In announcing the two moves the president and CEO of Interface, Daniel T. Hendrix, said they were part of an effort to build on the strength of the company's North American operations. "In 2005, we saw solid operating improvements and growth within our North American fabrics business, and continuing to increase sales and enhance the profitability of this business remains an important part of our strategy. Overall, we feel the sale transaction and our restructuring activity in North America allow for greater financial flexibility."
The acquisition of Camborne Holdings was led by the division's management team with financing from the Bank of Scotland. The division last year generated revenue of $62.8 million and operating income of $3.1 million. Interface said proceeds from the sale will be used to pay down debt or reinvest in other businesses operated by Interface.
Interface sells Camborne Holdings, plans to shut Mass. carpet plant
June 1, 2006