DIXIE YARNS <DXYN> TO ACQUIRE TI-CARO INC Dixie Yarns Inc and <TI-CARO Inc> jointly said they signed a merger agreement calling for Dixie to acquire all TI-CARO's stock in exchange for three mln of Dixie's common. The companies said the previously announced merger has been approved by TI-CARO's board and is expected to close by early April. They said the revenues of the combined companies will be over 600 mln dlrs, and Dixie said the merger will not dilute its 1987 results. TI-CARO was taken private in 1984 in a management led leveraged buy-out.