SOUTHFIELD , MI — Collins & Aikman has signed an asset purchase agreement with International Automotive Components Group North America Inc. (IAC NA) for the sale of the company’s North American automotive flooring and acoustic components business. The sale includes 16 facilities in the United States , Canada and Mexico. The Soft Trim business employs approximately 4,300 people and produces products for all major automakers.

The company will file a motion seeking approval of the agreement subject to higher or better offers through a bankruptcy court-monitored auction process. The agreement provides for aggregate consideration to the company of $134 million in cash, plus certain contingent consideration and certain assumed liabilities. The agreement also provides an opportunity for the company’s senior, secured prepetition lenders to invest in IAC NA’s parent company up to an aggregate cap of 25 percent of IAC NA’s outstanding stock. The company has asked the bankruptcy court for a hearing on April 24, on the bidding procedures relief in the motion and a hearing to approve the results of the auction on May 24.

"The sale of our Soft Trim business is one of the most important elements of our efforts to maximize creditor recoveries and preserve jobs for Collins & Aikman employees," said John Boken, Collins & Aikman’s chief restructuring officer. "Our Soft Trim management team has done an outstanding job of operating this portion of our business throughout the many facets of these bankruptcy proceedings. We look forward to completing due diligence and closing this transaction as expeditiously as possible so that our Soft Trim team can continue to prosper and grow as a market leader in flooring and acoustics under new ownership."

For more information about Collins & Aikman, go to: http://www.collinsaikman.com.