Dixie Sells Ringgold Plant To Shaw

Chattanooga, TN, Dec. 5--The Dixie Group, Inc. on Friday announced that it had executed a definitive agreement to sell its Ringgold, Georgia, 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. 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."

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