Unifi (UFI, Financial) has entered into a definitive agreement to sell one of its industrial properties located in Madison, North Carolina. The transaction, which involves Unifi's subsidiary Unifi Manufacturing, Inc. (UMI) and Enovum Data Centers, will see the sale of a building, underlying land, and associated machinery for a total cash consideration of $53.2 million.
An earnest deposit of $2.25 million is part of the agreement, with $1.2 million being non-refundable should the deal not close. The agreement sets a closing date of May 15, 2025, though there is an option for the buyer to accelerate the timeline. The transaction is subject to several customary conditions, including an energy study to assess the property's potential energy capacity.
Under the terms of the agreement, any indemnification obligations on Unifi's part are triggered only if the buyer's total losses reach or exceed $0.1 million, with Unifi's liability capped at ten percent of the purchase price. The agreement also includes standard representations and warranties valid for one year post-closing.
The proceeds from this sale are intended to be used by Unifi to settle part of the outstanding principal of its term and revolving loans under its existing credit arrangements, established on October 28, 2022. The net book value of the assets tied to the Madison facility stood at $9 million as of December 29, 2024, reflecting a strategic disposition of assets by the company.
