Dixie Shares Jump After Agreement To Sell Commercial Business To Mannington For Undisclosed Sum

Dixie Group Inc DXYN has agreed to sell its commercial business to Mannington Mills Inc.
The terms of the deal will be finalized in the near future.
Mannington will buy the AtlasMasland business, including certain tufting machines, other equipment, and inventories, and will not purchase any facilities.
Mannington will take over the Company’s AtlasMasland sales, marketing, and product design functions.
Till the transaction is completed, Dixie will continue to manufacture goods for Mannington.
“Our Dixie Residential business is very strong, and, in order to support our Residential growth strategy, we are investing in additional tufting and cabling equipment for the Atmore plant,” said Daniel K. Frierson, Chief Executive Officer, Dixie.
Price action: DXYN shares are trading higher by 12.7% at $2.96 on the last check Wednesday.