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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 3, 1999
Commission File Number 333-24699
COLLINS & AIKMAN FLOORCOVERINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware 58-2151061
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
311 Smith Industrial Boulevard, Dalton, Georgia 30721
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (706) 259-9711
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ITEM 5. OTHER EVENTS
On August 3, 1999, Collins & Aikman Floorcoverings, Inc., (the
"Registrant") issued a press release announcing the purchase of Nova Scotia,
Canada based Crossley Carpet Mills Limited. A copy of the press release is
included as an exhibit to this report and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
C. Exhibits
99.1 Press Release dated August 3, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: August 3, 1999
COLLINS & AIKMAN FLOORCOVERINGS, INC.
By: /s/ Darrel V. McCay
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Darrel V. McCay
Vice-President and Chief Financial Officer
(Duly Authorized Officer and Principal
Financial and Accounting Officer)
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Exhibit 99.1
FOR IMMEDIATE RELEASE More Information:
Stephanie Styles, Slaughter Hanson
(205) 458-9359
COLLINS & AIKMAN FLOORCOVERINGS ACQUIRES CANADA'S CROSSLEY CARPETS
DALTON, Ga. (August 3, 1999) - Collins & Aikman Floorcoverings, Inc. today
announced its acquisition of Nova Scotia-based Crossley Carpet Mills to continue
the company's international growth strategy and to enable it to better serve the
Canadian market.
According to Mac Bridger, Chief Executive Officer of Collins & Aikman
Floorcoverings, "The acquisition of Crossley, Canada's leading carpet producer,
is an excellent fit for us in terms of technology, products and markets served."
He went on to say that "One of the great values in this acquisition is the
strength of the management team, which, over the last few years, has
successfully launched the company's products in the US market. We intend to
build on that strength."
"This is an exciting day for Crossley," said Les Single, Chairman and Chief
Executive Officer of Crossley. "Technology and style are combining like never
before and being part of the Collins & Aikman family as we face the competitive
global marketplace will certainly expand the opportunities for Crossley's mill
in Nova Scotia."
"We are extremely excited about adding Canada's premium carpet brand to the
Collins & Aikman Floorcoverings family," said Bridger. "Crossley's woven
capability will add another important product category to the company's
portfolio. We will now be able to offer our customers a full range of
complementary products...from six-foot roll and modular tile to broadloom to
wovens." He added, "This is an extremely important move for us, which comes on
the heels of our recent merger with Monterey Carpets, Inc. These are two
powerful brands in their respective markets, and together with Collins & Aikman,
will provide the customer substantial depth and breadth of products."
In Canada, Crossley has been producing a quality product for more than 36 years,
though the company traces its roots back almost 200 years in England. Crossley
will operate as a wholly-owned subsidiary of Collins & Aikman Floorcoverings.
The company will maintain the manufacturing facilities and employee base in Nova
Scotia. A primary focus is to continue to support the outstanding distribution
system in Canada and the United States that Crossley has established through
independent dealers over the last several years.
Known for its award-winning product design in both the commercial and
residential segments, Crossley has been recognized for its innovative styling
with honors from NeoCon, IIDEX, ROSCOE, and ARIDO. Likewise, Collins & Aikman
has also been recognized for design and technological leadership, having
received the DuPont Antron Product Innovation Gold Award in the modular tile
category and the prestigious Innovative New Product Award as "Best of the Best"
by the National Recycling Coalition.
"New product development is vital to our ability to exceed our customers'
expectations. With the addition of Crossley, we can now offer woven and modular
technologies to our customers," said Lee Schilling, Senior Vice President at
Collins & Aikman. "Also, we're intrigued with the idea of exploring woven
designs for modular products."
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Regarding Crossley's diverse product offerings for both the residential and
commercial segments, Bridger said, "We see great potential in the North American
market and we intend to aggressively pursue those opportunities through the
Crossley organization."
"Looking forward, we will continue to seek acquisitions of companies that share
our vision and values, and represent a good strategic fit in terms of products
and markets," stated Bridger. "Rather than acquiring simply for the sake of
growth, we'll ask if it will bring more value to our customers."
The Crossley acquisition is the latest step in the continuing development of
Collins & Aikman's international strategy. In July 1998, Collins & Aikman
acquired Advance Carpet Tiles, Ltd. (ACT), based in South Wales, United Kingdom.
A leading manufacturer of commission vinyl and Bitumen backing systems for
European carpet producers, ACT provides a manufacturing and operations base for
Collins & Aikman's growing European and Asian business. The following month,
Collins & Aikman entered into a joint venture in Singapore. Known as Collins &
Aikman Floorcoverings Asia Pte. Ltd., the company serves as a marketing and
distributing organization.
ABOUT COLLINS & AIKMAN FLOORCOVERINGS, INC.
An international manufacturer and supplier of high-performance commercial
carpeting for the corporate, healthcare, education, government and retail
sectors, Collins & Aikman Floorcoverings is renowned for pioneering the
development of environmentally responsible products. The Dalton, Ga.-based
company produces floorcoverings that last up to three times longer than
conventional carpeting and remains the first and only manufacturer to make a 100
percent recycled-content vinyl backing, ER3. Collins & Aikman is a leading
producer of modular carpet tile and the number one producer of six foot roll
carpet.
