Dixie Group Sells AtlasMasland Commercial Business For $27.5M

Dixie Group Inc DXYN has sold its AtlasMasland commercial business to Mannington Mills Inc in a transaction valued at $27.5 million.
The assets sold include inventory, specific machinery and equipment used exclusively in the Commercial Business, and related intellectual property.
Dixie Group retained the Commercial Business' cash deposits, all accounts receivable, certain inventory and equipment, and the Atmore and Saraland facilities.
The company plans to use the funds received through the deal to lower debt by approximately $20 million and increase borrowing availability.
Dixie Group expects the favorable impact from the sale to help offset the effect on its financial statements of raw material cost increases experienced throughout the year.
For the first 11 weeks of Q3, the company's residential sales and orders are up more than 25% from the same period of a year ago.
Price Action: DXYN shares are trading lower by 3.51% at $5.22 on the last check Friday.