S&P: Unifi unaffected

Standard & Poor's said its ratings on Unifi Inc. (CCC+/negative) will not be affected by the company's announcement that it will acquire the assets of the Dillon Yarn Division of Dillon Yarn Corp. The purchase price is $65 million, which Unifi will finance with $44.5 million of cash, in addition to bank revolver borrowings.

The agency said the acquisition should provide Unifi with incremental annual revenues of about $90 million, as well as operational synergies. Unifi expects the transaction will be accretive to earnings for the fiscal year ending June 2008.

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