Unifi will acquire dyed yarn business of National Spinning – Greensboro-based Unifi Inc. said Thursday it has entered into an agreement to acquire the dyed yarn business and assets of Washington, N.C.-based National Spinning Co. for an undisclosed amount – Unifi dyed yarn National Spinning - Arhive
Unifi will acquire dyed yarn business of National Spinning
Greensboro-based Unifi Inc. said Thursday it has entered into an agreement to acquire the dyed yarn business and assets of Washington, N.C.-based National Spinning Co. for an undisclosed amount.
National Spinning’s dye plant is located in Burlington at 226 Glen Raven Road and those operations will transition to Unifi’s Reidsville dye house facility.
As part of the transition, approximately 45 jobs will transition to Reidsville from Burlington, including key sales, technical and operations personnel from National Spinning, said Tom Caudle, president and chief operating officer of Unifi (NYSE: UFI). The company has said it will also extend offers to other National Spinning employees. Unifi officials were not available for comment and did not immediately address questions about if and how many positions would not transition with the move.
A net increase of Unifi’s 241 person Reidsville workforce is not expected as a result of the transaction, Caudle said.
“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,” Caudle said.
“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,” he said.
The acquisition is expected to close in May 2018, and, once completed, the company expects to run its Reidsville dyeing operations on a seven-day schedule.
“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.”
The Reidsville facility, in addition to dyeing operations, also houses Unifi’s 160,000-square-foot plastic bottle recycling center, which produces clean plastic bottle flake used in the production of the company’s Repreve yarn. The company also operates a recycling facility in Yadkinville, where flake is converted to pellets used in Repreve fiber and 1,100 people are employed.
Through production of its Repreve fiber, the company has recycled 10 billion plastic water bottle and hopes to hit the 20 billion mark by 2020 and 30 billion by 2020.
The company employs 116 people at its Greensboro corporate headquarters.
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