Selling nylon carpet fibres

Honeywell announced today that it has agreed to sell its US nylon carpet fibres business to Shaw Industries Group, a subsidiary of Berkshire Hathaway.

Honeywell and Shaw also agreed to a long-term supply agreement for Honeywell to supply Shaw with caprolactam and nylon resin, two intermediate chemicals used in the production of nylon fibres for carpeting and other applications.

Honeywell's Nylon business is comprised of two operations: fibres and intermediates. Honeywell will retain the intermediates business, which manufactures caprolactam, Aegis nylon resins for various fibre and plastic applications, Sulf-N ammonium sulphate fertiliser and other chemicals.

Financial terms of the agreement were not disclosed. The transaction, which is subject to Hart-Scott-Rodino regulatory review, is expected to close in the fourth quarter of 2005.

Under terms of the transaction, Honeywell will sell its nylon fibre manufacturing operations in Anderson, Clemson and Columbia, S.C., to Shaw Industries, which will also acquire the Zeftron nylon and Anso nylon brand names. Shaw will also acquire Honeywell's 50 percent stake in Evergreen Nylon Recycling, based in Augusta, Georgia.