Dixie Group Sells AtlasMasland Commercial Business For $27.5M

• Dixie Group Inc (NASDAQ: DXYN) has sold its AtlasMasland commercial business to Mannington Mills Inc in a transaction valued at $27.5 million.

• The assets sold include inventory, specific machinery and equipment used exclusively in the Commercial Business, and related intellectual property.

• Dixie Group retained the Commercial Business' cash deposits, all accounts receivable, certain inventory and equipment, and the Atmore and Saraland facilities.

• The company plans to use the funds received through the deal to lower debt by approximately $20 million and increase borrowing availability.

• Dixie Group expects the favorable impact from the sale to help offset the effect on its financial statements of raw material cost increases experienced throughout the year.

• For the first 11 weeks of Q3, the company's residential sales and orders are up more than 25% from the same period of a year ago.

• Price Action: DXYN shares are trading lower by 3.51% at $5.22 on the last check Friday.

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