Unifi, Inc., the company behind Repreve and a global leader in recycled and synthetic yarns, has announced the sale of its manufacturing facility in Madison, North Carolina. The transaction, valued at USD 45 million, marks a strategic shift aimed at streamlining operations and improving the financial position of the company’s Americas segment.

Of the net proceeds, USD 25 million was used to pay down Unifi’s existing term loan, while USD 18.3 million was allocated to reduce its revolving loan balance. As a result, total debt principal has been cut by approximately USD 43.3 million, significantly strengthening the company’s balance sheet.

According to CEO Eddie Ingle, the closure and relocation of operations from the Madison site will deliver enhanced operational efficiency. “The sale of our Madison facility, and related exit of yarn manufacturing at that site, marks a significant step in transitioning our Americas business to improved profitability,” he said. “The relocation of production capacity to other sites across North and Central America will dramatically optimise our business and make Unifi a leaner organisation.”

Unifi expects to achieve more than USD 20 million in estimated annualised cost savings once the transition and restructuring efforts are completed.

Known for its innovative use of post-industrial and post-consumer waste, Unifi continues to push sustainable fibre development through its flagship brand, Repreve. The company maintains direct operations in the United States, Colombia, El Salvador and Brazil, and continues to grow its presence globally.

Further reading

Unifi to close Madison plant

www.unifi.com