Sleep Innovations Owner Grabs More Foam
April 9, 2007,
The owner of Sleep Innovations plans to acquire Leggett & Platt's Prime Foam operations for an undisclosed price, which would raise by over 60% its annual revenues derived from foam.
The division is being acquired by Comfort Co., which is controlled by the Greenwich, Ct.,-based private equity firm Catterton Partners. In fall 2005, Catterton bought a controlling interest in Sleep Innovations.
Leggett said the deal should result in a pretax gain of about $24 million or 6 cents per share. It also will reduce the company's full-year operating earnings by about 4 cents per share. The company said it would retain its foam operations that produce carpet underlay. The deal marks the largest divestiture in Leggett's history.
David Haffner, Leggett's president and ceo, said that while Prime Foam is performing well, the company's market position is small and the business doesn't fit into the company's long-term strategic plan.
Related Content By Author
TEN Collection Wows High Point Market
Home Textiles Today eDaily
Most Viewed Articles
See the November 2017 issue of Home Textiles Today. In this issue, we look at Complex Colors, Complex Times--Trend forecasters and interior designers weigh in on 2018 palettes and motifs. Other articles include: Data: Exclusive HTT soft window research; Innovation: Material Changes conference preview; Country report: India invests in the future and Fabrics: Showtime preview.