Unifi announces acquisition
30/10/2006
US-based producer and processor of multi-filament textured yarns Unifi, Inc. has signed a definitive agreement to acquire the assets, including inventory, of the textured yarn business operating as the Dillon Yarn Division of Dillon Yarn Corporation. The purchase price will be approximately $65 million.
Dillon Yarn Corporation is a privately held company and operates a facility in
Unifi currently supplies approximately $40 million of raw material to Dillon that will be treated as inter-company sales after closing. Synergies generated from the transaction in fiscal year 2008 are expected to be in the range of approximately $6-8 million.
The purchase is expected to be completed in early January 2007.
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