Unifi has acquired the hosiery yarn and texturing assets of Sara Lee Branded Apparel and entered into a long-term agreement to become the hosiery manufacturer's nylon supplier. The deal will increase net sales in Unifi's nylon yarn division by more than 20 percent, and will result in the addition of approximately 170 positions to the Company's facilities in Rockingham County. Under terms of the agreement, Unifi will purchase certain yarn production equipment from Sara Lee Branded Apparel for $2.6 million.
The production of fine denier covered yarn and textured nylon filament yarn for Sara Lee's hosiery operations will be transferred to existing equipment located in Unifi's Madison, N.C., facility. The transfer is expected to be completed by July 16, 2004.
“The incremental volume generated from this agreement enhances the scale of our manufacturing operations and creates a healthier, stronger nylon business for Unifi,” said Eddie Ingle, Nylon Business Unit Manager for Unifi. “Our wide product range and speed-to-market capabilities will create a faster and more efficient supply line between Unifi and Sara Lee, which are key advantages in a very competitive marketplace.”
With the agreement, Sara Lee exits the fine denier covered yarn and textured nylon filament yarn businesses. Unifi will offer positions in Madison to Sara Lee employees who worked in yarn and texturing functions.
“Since Hanes hosiery pioneered the use of nylon to make women's sheer hosiery, we have set the standard for quality and style in the industry,” said Ron Gburek, Vice President of Supply Chain for Sara Lee Branded Apparel's Intimates and Hosiery Operations. “Knowing that Unifi can meet our standards for timely delivery of quality yarns enables us to concentrate on styling, producing and marketing our leadership brands. We have enjoyed a long relationship with Unifi, and we are pleased to extend it with this outstanding agreement.”
With the transfer of volume to Unifi facilities, Unifi will add to its position as the largest textured nylon producer in the United States.
“This agreement is the result of two leading supply chain partners coming together to build upon their individual core strengths,” said William Lowe, Chief Operating Officer and Chief Financial Officer for Unifi. “Unifi will continue to look at creating efficiencies throughout the supply chain, as well as opportunities that are achievable through consolidation.”
