Shaw Industries Agrees to Purchase U.S. Nylon Carpet Fibers Business From Honeywell
September 1, 2005
Shaw Industries Agrees to Purchase U.S. Nylon
Carpet Fibers Business From Honeywell
Dalton, GA - Shaw Industries Group, Inc., a subsidiary of Berkshire Hathaway, announced today that it has agreed to purchase the U.S. nylon carpet fibers business from Honeywell International (NYSE: HON) based in Morris Township, NJ.
Shaw and Honeywell also agreed to a long-term supply agreement for Honeywell to supply Shaw with caprolactam and nylon resin. Caprolactam is used in the production of nylon 6.
Financial terms of the agreement were not disclosed. The deal, which is subject to Hart-Scott-Rodino regulatory review, is expected to close in the fourth quarter of 2005.
Under terms of the transaction, Shaw will acquire Honeywells nylon fiber manufacturing operations in Anderson, Clemson and Columbia, SC along with the Zeftron nylon and Anso nylon brand names. Shaw will also acquire Honeywells 50 percent stake in Evergreen Nylon Recycling based in Augusta, GA.
Honeywells nylon fiber operations in Shanghai, China and Arnprior, Canada and its textile operations in Anderson, SC are not part of the transaction.
Shaw Industries is based in Dalton, GA and produces and sells carpet, rugs, ceramic, hardwood, and laminate flooring for residential and commercial applications throughout the world.
Honeywell International is a $26 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials based in Morris Township, NJ.