GREENSBORO – Unifi Manufacturing, an operating subsidiary of synthetic and recycled yarn business, Unifi, has entered into an agreement to acquire the dyed yarn business and assets of National Spinning Co. The deal, expected to complete in May 2018, is aimed at expanding Unifi’s position as a leading producer of dyed staple and filament yarn in the region. The deal will also add acrylic and wool products to the company’s dyed yarn portfolio.
“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,” said Tom Caudle, president and COO of Unifi.
“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. Expanding our product portfolio will also bring additional innovation to the dyed yarn supply chain, and will provide more sourcing flexibility for customers while assuring continued capability and expertise.”
Unifi said that as part of the deal, it will move the dyed yarn business from National Spinning’s facility in Burlington, N.C. to its own state-of-the-art dye house in Reidsville, N.C, a move which will likely bring notable scale economies.
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.
“We believe this transaction best serves the long-term interests of both our employees and our customers,” said Jim Booterbaugh, president and COO 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.”
