Dixie Sold AtlasMasland for $20.5 Million
Chattanooga, TN, September 17, 2021-The Dixie Group said Thursday it sold its AtlasMasland commercial business for $20.5 million to Mannington Mills Inc., reports the Chattanooga Time Free Press.
“The Chattanooga-based carpet and floorcovering manufacturer, which announced the sale in June but disclosed the terms on Thursday, said it will retain its commercial business' cash deposits, accounts receivable and some inventory and equipment valued at $7 million. That brings the effective sales price for the commercial carpet line to $27.5 million.
“Dixie also said it will retain its Atmore and Saraland production facilities for residential floorcovering operations.
“The sale proceeds will help Dixie pare its debt by about $20 million.
“The sale of the commercial carpet business will trim company revenues by about $60 million ‘but make the company a nimble, upper-end residential floorcovering manufacturer with a growing business,’ according to Floor Focus publisher Kemp Harr.
“Frierson said retaining some of the plant facilities at its Atmore and Saraland facilities will help Dixie to grow its residential business and gain market share.”