Unifi’s fiscal first quarter net sales from continuing operations slipped 7.2% to $169.9 million compared to $183.1 million for the prior year’s September quarter. The textile company’s net loss from continuing operations for the quarter was $11.0 million, or 21 cents per share compared to a net loss of $4.8 million or nine cents per share last year.

In other news, Unifi, Inc. has signed a definitive agreement to acquire the assets, including the inventory, of the Dillon Yarn division of Dillon Yarn Corporation. The purchase price will be approximately $65 million, comprised of $44.5 million in cash and approximately 8.3 million shares of Unifi common stock. The company expects to use cash-on-hand and its bank revolver to fund the cash portion of the deal.

Annual sales of the assets being acquired were approximately $130 million. Unifi currently supplies approximately $40 million of raw material to Dillon that will be treated as inter-company sales after closing. The company expects to be able to lower the overall cost of production through operational synergies, which will enable it to better compete both regionally and globally. The company expects to continue to operate the facility in South Carolina and streamline the product mix with its existing production facilities.