Collins Aikman Signs Letter of Intent to Acquire Automotive Fabric Operations From Joan Fabrics

TROY, Mich.--(AutomotiveWire)--April 18, 2001--Collins & Aikman Corporation (NYSE:CKC) announced today that it has signed a letter of intent to acquire the automotive fabric operations of Joan Fabrics (Joan), a leading supplier of bodycloth to the automotive industry, and all of the operating as...

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Bibliographic Details
Published inBusiness Wire p. 1
Main Author Business & Automotive Editors
Format Newsletter
LanguageEnglish
Published New York Business Wire 18.04.2001
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Customers
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Summary:TROY, Mich.--(AutomotiveWire)--April 18, 2001--Collins & Aikman Corporation (NYSE:CKC) announced today that it has signed a letter of intent to acquire the automotive fabric operations of Joan Fabrics (Joan), 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, Joan and WAD had combined EBITDA of approximately $27 million, and total sales -- including non-automotive sales, of approximately $265 million. Consideration is expected to include $100 million in cash and 12,760,000 shares of Collins & Aikman common stock. 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 transaction is anticipated to significantly enhance Collins & Aikman'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.