Interface, Inc. has reached an understanding to acquire the furniture fabric assets of the Chatham Manufacturing division of CMI Industries, Inc., subject to the negotiation and board approval of a definitive agreement. The transaction is anticipated to close during May 2000. Financial terms were not disclosed, but the deal is expected to add to earnings in 2000. Ray C. Anderson, Chairman and CEO, commented, “The purchase of Chatham’s furniture fabric assets will substantially diversify our fabric product offering and enhance our position in the upholstery fabric market. When the transaction is completed, Interface will have a significant share of the contract upholstery market, which will complement our current dominant share of the panel fabric market. We expect to leverage our brand strength and market positions in both of these markets to drive sales growth and margin improvement in our fabrics business.”
From officeinsightTM
