Collins & Aikman Signs Letter of Intent to Acquire Automotive Fabric Operations From Joan Fabrics.(Brief Article)

Collins & Aikman Corp. said that it has signed a letter of intent to acquire the automotive fabric operations of Joan Fabrics, a leading supplier of bodycloth to the automotive industry, and all of the operating assets in Joan's affiliated yarn dying operation, Western Avenue Dyers (WAD). For fiscal 2000, Collins & Aikman said Joan and WAD had combined EBITDA of approximately $27 million, and total sales - - including non-automotive sales, of approximately $265 million.

Completion of the transaction is subject to normal terms and conditions, including negotiation of definitive documentation, and is expected to close within the next several months, the company said. Collins & Aikman said the transaction will significantly enhance the company's automotive fabric capabilities, which should enable the company to provide its fabric customers with lower costs, while simultaneously enhancing customer service, product design, delivery, scheduling and coordination.

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