Joan auto biz sold to C&A
Carole Sloan -- Gifts & Dec, April 23, 2001
TYNGSBORO, MA — With the sale of his automotive business to Collins & Aikman, Elkin McCallum will be able "to put more focus on my decorative residential fabric businesses."
McCallum and C&A have signed a letter of intent for the sale of Joan Fabrics' automotive velvet business, based in Hickory, NC, and the automotive knit business in Lowell, MA.
In addition, Western Avenue Dyers (WAD), a dyeing facility jointly owned by McCallum, Penny Richards and Kerry McCallum, also is part of the transaction. The trio also are co-owners of Main Street Fabrics, Lowell, MA, under the Tyngsboro Textiles corporate umbrella. The Hickory, NC, plant is not included in the sale, nor is the Joan Fabrics name, McCallum said.
McCallum also owns Mastercraft, with its related companies, Home Fabrics and Doblin, and this year completed the acquisition of Circa 1801, a high-end decorative fabrics producer.
Joan Fabrics, including non-automotive fabrics, and WAD, had sales of about $265 million in 2000.
C&A is expected to pay $100 million in cash and approximately 12.8 million in C&A stock to McCallum. He will have a seat on the C&A board and will hold "about 10 percent of the C&A stock," he said.
The sale of these assets, McCallum explained, "will reduce debt within the other fabric companies and will allow me to more focus on the residential side of the business — including velvets."
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