The Dixie Group Inc. (Nasdaq: DXYN) has closed a deal for Atlas Carpet Mills for $17.5 million.

Atlas Carpet Mills, headquartered in Los Angeles, manufactures carpet tiles. The company will operate as a separate brand within Dixie.

Chattanooga, Tenn.-based Dixie makes and markets carpet and rugs to residential and commercial customers through the Fabrica International, Masland Carpets, Dixie Home, Masland Contract and Avant brands.

For previous flooring deals, see "Tarkett Enterprises Purchases Tandus Group" and "Freeman Spogli, Ares Acquire Flooring Retailer." 

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