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Shaw buys out nylon carpet fibers unit from Honeywell

02 Sep '05

3 min read

Civil, military avionics & other aerospace products integrator Honeywell announced it has agreed to sell its US nylon carpet fibers business to Shaw Industries Group Inc, a subsidiary of Berkshire Hathaway Inc.

Honeywell and Shaw also agreed to a long-term supply agreement for Honeywell to supply Shaw with caprolactam and nylon resin, two intermediate chemicals used in the production of nylon fibers for carpeting and other applications.

Honeywell's Nylon business is comprised of two operations: fibers and intermediates. Honeywell will retain the intermediates business, which manufactures caprolactam, Aegis nylon resins for various fiber and plastic applications, Sulf-N ammonium sulfate fertilizer and other chemicals.

Financial terms of the agreement were not disclosed. The transaction, which is subject to Hart-Scott-Rodino regulatory review, is expected to close in the fourth quarter of 2005.

"Once completed, this divestiture will represent another major step in Specialty Materials' transformation," stated Nance Dicciani, President and CEO of Honeywell Specialty Materials.

"Divestiture of the non-core nylon carpet fiber business will allow us to focus on the future and company core growth portfolio, while building on the track record of financial achievement over the past three years."

Under terms of the transaction, Honeywell will sell its nylon fiber manufacturing operations in Anderson, Clemson and Columbia, to Shaw Industries, which will also acquire the Zeftron nylon and Anso nylon brand names. Shaw will also acquire Honeywell's 50 percent stake in Evergreen Nylon Recycling, based in Augusta, Georgia.

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