SHAW INDUSTRIES ANNOUNCES AGREEMENT TO FORM JOINT VENTURE WITH GRUPO INDUSTRIAL ALFA, S.A. DE C.V.
DALTON, Ga., Jan. 10 /PRNewswire/ -- Shaw Industries, Inc. (NYSE: SHX) announced that it had entered into an agreement to form a joint venture with ("Alfa"), of Monterrey, Mexico, for the manufacture, distribution and marketing of carpets, rugs and related products in Mexico and South America. The joint venture will hold the current assets of Tenedora Terza, S.A. de C.V., Alfa's Mexican carpet manufacturing operations. No terms have been disclosed. The transaction is subject to approval by the Boards of Directors of both companies, negotiation of additional agreements and any necessary government filings. Robert E. Shaw, President and Chief Executive Officer of Shaw Industries, making the announcement at Domotex, an international trade fair for carpets and floor coverings, in Hannover, Germany, commented that participation by Shaw Industries in the growing Mexican and South American markets is another step forward in the company's international expansion. Shaw Industries, Inc., with corporate offices in Dalton, manufactures and sells carpeting to retailers and distributors throughout the United States, Australia and the United Kingdom and exports to Canada and several other foreign markets. Grupo Industrial Alfa is a Mexican conglomerate with reported revenues of $2.5 billion in 1993. Alfa participates in numerous international ventures and strategic alliances, which also include many major United States' corporations. -0- 1/10/94 /CONTACT: Robert E. Shaw of Shaw Industries, 706-278-3812/ (SHX)
CO: Shaw Industries; Grupo Industrial Alfa, S.A. de C.V. ST: Georgia IN: TEX SU: JVN
TW-SH -- NY041 -- 0526 01/10/94 11:10 EST