CHARLOTTE — Ruddick Corp., parent of the Harris Teeter chain, said Thursday it has agreed to sell its American & Efird industrial thread division to KPS Capital Partners for $180 million in cash.
The transaction is expected to close in Ruddick's first quarter of fiscal 2012, which ends Jan. 1, and is subject to closing conditions. As a result of the transaction, the company expects to record pre-tax non-cash impairment losses and other related expenses totaling between $42 million and $48 million in the fourth quarter of fiscal 2011, which ended Oct. 2, 2011.
Thomas W. Dickson, chairman, president and chief executive officer of Ruddick, said the sale "allows the management team and their associates at A&E to continue to pursue their strategic plan of transforming A&E into a more Asian-centric enterprise, which has been years in the making.
"This transaction enhances the strategic plan for Ruddick and Harris Teeter as the cash proceeds from the sale can be utilized for numerous purposes, including the acceleration of new store growth and the repayment of debt," he added.