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.
The transaction is not expected to result in a material net gain or loss. Commenting on the sale, Daniel K. Frierson, Chairman of the Board of The Dixie Group, observed, "We expect completion of the sale will further strengthen our balance sheet and permit us to continue growing our higher-end carpet businesses."
The Dixie Group is a leading carpet and rug manufacturer and supplier to higher-end residential and commercial customers serviced by Fabrica International, Masland Carpets and to consumers through major retailers under the Dixie Home name.