The Dixie Group, Inc. on Tuesday announced it has entered into an agreement for the sale and leaseback of its distribution facility in Adairsville, Ga. The company anticipates the transaction will close in the third quarter of 2023.
Upon closing the transaction, the company expects to recognize a significant gain in net income. The proceeds from this financing transaction will be used to significantly reduce the company's debt and increase availability of funds under its existing lines of credit.
The agreement is in accordance with plans previously announced in the company's Form 10-Q filing for the first quarter of the current year. The closing of the sale-leaseback agreement is subject to the prospective purchaser's rights of inspection and approval. Other terms of the agreement were not announced.
Commenting on the announcement, Dan Frierson, the company's chief executive officer said, "We are pleased to announce our entry into a sale-leaseback agreement of our facility in Adairsville, Ga. The funds expected to be generated by this transaction will be used to further strengthen our balance sheet by reducing the company's outstanding debt and better positions us for future growth."