Chattanooga, Tenn.-based The Dixie Group, a carpet and rug manufacturer, has acquired privately held rug maker Fabrica International, Santa Ana.
Dixie bought 90% of Fabrica’s shares for $18 million in cash, and expects to buy the remaining shares for $2 million in the third quarter 2000. The transaction includes a contingent consideration, due in 2003 and 2005, of up to $52.5 million based on Fabrica’s future sales and earnings.
A manufacturer of high-end luxury carpets and rugs, Fabrica projects sales of $50 million this year.
