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Interface signs definitive deal to sell its fabrics division

20 Jun '07

3 min read

The final loss and expenses related to the disposition will be determined after the closing of the transaction based upon the closing balance sheet of the division.

For the full year 2006, the fabrics division generated revenue of $161.2 million and an operating loss of $27.3 million, and had depreciation and amortization of $9.4 million. These full year 2006 results include the operations of Interface's former European fabrics business, which was sold in April 2006. The divested European fabrics business accounted for sales of $17.3 million and an operating loss (after a $20.7 million goodwill impairment charge) of $19.6 million in 2006.

"We are pleased to enter this transaction with an affiliate of Sun Capital Partners and believe that the sale of our fabrics division is a good strategic and financial decision for Interface," said Daniel T. Hendrix, President and Chief Executive Officer.

"Strategically, the sale will allow Interface management to focus on leveraging the opportunities within our core modular carpet and Bentley Prince Street divisions, which have delivered consistently strong performance, while also providing the fabrics division with the resources to execute on its promising operating strategy."

"Financially, the transaction is in keeping with our goal of reducing our outstanding debt and further strengthening our balance sheet. I'd like to thank the employees of our fabrics division for their continuing dedication and hard work."

Interface Inc

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