Moving to enhance its position as a leading producer of dyed staple and filament yarn, Unifi Inc., through 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.
Unifi, already a leading manufacturer and marketer of synthetic and recycled yarns, said the acquisition will add acrylic and wool products to Unifi’s dyed-yarn portfolio. And according to Unifi, the acquisition also offers solid growth opportunity and more flexible sourcing for its customers.
The companies expect the transaction to close in May 2018, subject to typical closing conditions. Financial terms of the deal were not disclosed.
“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,” Tom Caudle, president and chief operating officer of Unifi, 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.”
Caudle added that by expanding its product range, the acquisition will also add innovation to the dyed yarn supply chain and ensure continued capability and expertise.
Unifi, which is based in Greensboro, N.C., intends to transition the dyed-yarn business from National Spinning’s facility in Burlington, N.C., to its state-of-the-art dye house in Reidsville, N.C. 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. 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 chief operating officer 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.”
Bob Miller, vice chairman of National Spinning, said, “National Spinning is still very much in the yarn business after the Unifi transaction. We maintain an active yarn spinning facility in Whiteville, N.C., with support of in-house sales, product development, and quality assurance. This plant produces a wide range of spun yarns on both worsted and short staple spinning systems.”
Miller noted that National Spinning also operate two other divisions–Carolina Nonwovens produces nonwoven roll goods and cut parts, and Hampton Art produces and distributes wholesale consumer craft products.
With its Repreve brand, Unifi has transformed more than 10 billion plastic bottles into recycled fiber that goes into apparel, footwear and home goods, among other consumer products. Unifi specializes in performance yarns and fibers that include moisture management, thermal regulation, antimicrobial, UV protection, stretch, water repellency and enhanced softness with its Sorbtek, XS Cross Section technology and Cotton-like technology.