The Dixie Group Acquires Atlas Carpet Mills

Friday, March 14, 2014

The Dixie Group, Inc. on Friday announced its agreement to acquire Atlas Carpet Mills, a high-end manufacturer and marketer of commercial floorcovering products located in Los Angeles.

As outlined in its agreement, closing of the acquisition is scheduled for Wednesday. In commenting on the agreement, Daniel K. Frierson, Dixie’s chairman and CEO said, “We are very pleased to announce our agreement to acquire Atlas. Dixie and Atlas have had a long relationship that goes back over 40 years. Jim Horwich, founder of Atlas, will remain with us as president of Atlas reporting to Kennedy Frierson, Dixie’s chief operating officer. Mark Nestler, executive vice president and Scott Price, vice president of Manufacturing will continue in their respective leadership roles at Atlas.

Kennedy Frierson said, “Atlas has a very strong sales force and excellent brand equity in the market place, which should maximize our opportunities for growth. This strong market position has been created by the superior design and styling of their product offerings.” Mr. Frierson further commented, “Following our acquisition, the Saybrook tufting, coating, inspection and shipping operations of Atlas will continue normal operations. In addition, there will be no change to the administrative, product development and sales functions of the company. However, over the next several weeks, Atlas’ dyeing operations will be consolidated into Dixie’s Susan Street facility located in Santa Ana, California. Many of the associates who now work in the Atlas dye facility will transfer to the expanded Santa Ana dyeing operations.

"Atlas had sales of approximately $53 million in 2013, having offerings in both broadloom and modular carpet tile. They have demonstrated superior management, with profitable operations every year of the company’s 44 year history. Although Atlas will operate as a separate brand within the Dixie portfolio, we believe there are significant synergies from the consolidation of the two dye houses and utilization of other Dixie assets."

The acquisition of Atlas will be an all cash transaction and will involve retaining the top three officers under five year contracts. The seller was represented in the transaction by Greenberg Glusker Fields Claman & Machtinger LLP and the buyer by Miller & Martin PLLC.


Chattanooga Business Leaders To Discuss Economic Impact Of New Climate Policies

With severe weather events causing economic losses across the country, business leaders will join Mayor Andy Berke and Heather McTeer Toney, Southeast Regional Administrator for the U.S. Environmental Protection Agency, for a roundtable to discuss the impact of climate change on Tennessee businesses.   Local business and community leaders will talk ... (click for more)

June County Unemployment Rates

County unemployment rates for June show the rate increased in all 95 counties. Specific county information for June is available on the Internet; enter http://www.tn.gov/labor-wfd/labor_figures/LaborJune2014.pdf . Davidson County had the state’s lowest major metropolitan rate in June at 6.0 percent, up from 5.2 in May. Knox County was 6.3 percent in June, up from 5.3 in May. ... (click for more)

23-Year-Old Stabbed To Death Early Sunday Morning

A man was stabbed to death in Chattanooga early Sunday morning. At approximately 2:48 a.m., Chattanooga Police responded to 2525 6 th  Avenue Court for a person stabbed.  Officers located a 23-year-old suffering from a stab wound to his chest.  The victim was transported to a local hospital where he later died from his injury.  The victim’s information ... (click for more)

Man, 21, Arrested In Hidden Camera Case

An arrest has been made in a case in which a hidden camera was apparently placed in several local restrooms. Chattanooga Police last Sunday, received from a citizen a hidden camera that apparently had been placed by an unknown suspect in the men’s restroom at the Chattanooga Billiards Club downtown.  The footage from the camera was reviewed by Investigators with the ... (click for more)

An Open Letter To Tennesseans

We are incredibly fortunate to live in a state in which companies worldwide are clamoring to establish a presence. Many attribute it to our pro-business culture, well-prepared workforce, low tax environment, right-to-work policies, and engaged citizenry.  That is why the announcement by Volkswagen to build its midsize sports utility vehicle and establish the South’s ... (click for more)

Roy Exum: O’Reilly’s Rant On Race

I don’t really care whether you like Fox News commentator Bill O’Reilly but I strongly believe I must share an urgent transcript with you of what he said earlier this week. It’s been talked about on every network and it speaks boldly to the very heart of an American epidemic. Last weekend in Chicago 47 people were shot and five of them died. Black-on-black shootings have gotten ... (click for more)