GREENSBORO — Unifi, Inc. (NYSE: UFI), one of the world’s leading innovators in synthetic and recycled yarns, announced that its domestic operating subsidiary, Unifi Manufacturing, Inc., has entered into an agreement to acquire the dyed yarn business and assets of National Spinning Co., Inc.
The acquisition is expected to enhance Unifi’s position as a leading producer of dyed staple and filament yarn in the region, and will add acrylic and wool products to the company’s dyed yarn portfolio. The companies expect the transaction to close in May 2018, subject to typical closing conditions.
“This acquisition will better position Unifi for growth in key market segments such as sweaters, hosiery and apparel, as our expanded dyed yarn portfolio will help strengthen our relationship with existing customers and brings opportunities to attract new customers as we become an even greater solutions provider,” said Tom Caudle, president and COO of Unifi. “Additionally, our customers continue to focus on shortening product development and production lead times, and thus we expect that these new capabilities will allow us to provide flexible and responsive dyed yarn solutions to meet this demand. Expanding our product portfolio will also bring additional innovation to the dyed yarn supply chain, and will provide more sourcing flexibility for customers while assuring continued capability and expertise.”
Unifi intends to transition the dyed yarn business from National Spinning’s facility in Burlington to Unifi’s state-of-the-art dye house in Reidsville. Once completed, Unifi expects its Reidsville dye house to operate on a seven-day schedule, allowing the Company to deliver on quick lead times and enhance responsiveness to customer needs. To help make the acquisition as seamless as possible, key National Spinning sales, technical and operations personnel will join Unifi as employees, and the Company will also extend employment offers to other members of National Spinning’s skilled workforce.
“We believe this transaction best serves the long-term interests of both our employees and our customers,” said Jim Booterbaugh, president and COO of National Spinning. “Customers will receive world-class innovation and technical support from Unifi, and employees that join Unifi will benefit from the career opportunities provided by a larger portfolio of products, services and solutions.”