MONTREAL — Dominion Textile Inc. said it has agreed to sell its interlinings business — DHJ Industries — to Chargeurs Textiles, a unit of the Chargeurs group of France. The DHJ companies, including Senfa SA (France), Nordlys (Malaysia) and Tessilgiorgione SpA (Italy), and the ownership position in DHJ affiliates will be sold for book value plus a premium payable in cash. The total net proceeds to Dominion Textile are estimated at approximately $65 million U.S. Proceeds will be used for debt reduction and general corporate purposes. The agreement also includes earn-out provisions based on reaching certain levels of profitability in fiscal 1995 and over the next two fiscal years.
In addition, Dominion Textile and Chargeurs Textiles are considering terms of cooperation between their respective nonwoven subsidiaries, Nordlys SA of France and Intissel. Poly-Bond Inc., Dominion Textile’s North American-based nonwovens company, is not affected by the transaction.
The sale is expected to be closed during Dominion’s fourth fiscal quarter, ending June 30, following the due diligence and audit process. DHJ Industries has worldwide sales of more than $120 million and employs nearly 900. These employees will be joining Chargeurs Textiles.
John A. Boland 3rd, president and chief executive officer of Dominion, said, “While the interlinings business has been a fairly consistent contributor throughout its 20-year association with our corporation, we have determined that greater value would be created for our shareholders by selling DHJ to a strategic buyer of Chargeurs’ reputation rather than by retaining it in our portfolio.”
DHJ Industries manufactures and distributes woven and nonwoven apparel interlinings as piece goods and as die-cut linings. Chargeurs claims to hold the number-one rank worldwide in weft-inserted interlinings through its LaniAre de Picardie, Intissel and Bertero divisions. Chargeurs interlining sales will total roughly $254.9 million in 1995, and 80 percent of production is sold outside of France. — Fairchild News Service