Dalton— Beaulieu of America has set in motion its plan to sell certain properties in order to “generate working capital and relieve our debt,” said Ralph Boe, president of the company’s Residential Division. Beaulieu signed letters of intent: one with Springs Industries for its rug division, and two with Shaw Industries for two chemical facilities.

Sale of the rug division includes manufacturing plants and affiliated holdings here and in Ontario, Canada, which make woven area rugs and tufted bath rugs. The division’s annual sales volume exceeds $120 million. One letter of intent with Shaw is for the acquisition of Georgia Monomers Co. LLC from South Richmond Chemical LLC, which has a 45% stake in it as part of a joint venture with DSM of North America, owner of the remaining 55% of the company. Georgia Monomers manufactures an ingredient needed in the making of nylon. The other letter of intent is for Shaw to acquire Beaulieu’s nylon manufacturing facility in Aiken, S.C.

Details of the three transactions were not disclosed nor were dollar amounts released by the companies involved. Boe said he expects the three deals to close as early as the end of this month and no later than the end of the first quarter. Boe pointed out that Beaulieu still has a plant in Bridgeport, Ala, and two in Dalton that manufacture nylon and polypropylene, “and we have unused capacity that is available to us.” He said there will be an agreement with Shaw to continue to supply Beaulieu with fiber from the divested properties. “These moves are good for our company. This will improve our liquidity and make us stronger in our core business.” Asked where he would place Beaulieu’s annual volume with the completion of the three transactions, “We will still be over $1 billion,” he said. —Al Wahnon