Foamex Sells Rubber and Felt Carpet Cushion Busine
Linwood, PA, April 29--Foamex International Inc. today announced that it has sold its rubber and felt carpet cushion businesses to Leggett & Platt, including the Cape Girardeau, Missouri rubber manufacturing facility and certain assets of the Newton, North Carolina felt manufacturing facility, for approximately $38.5 million. Foamex intends to use the proceeds of the transaction to pay down debt.
Foamex will continue to offer prime and rebond polyurethane carpet cushion and flooring underlay products through its Carpet Cushion division.
Commenting on the transaction, Tom Chorman, president and chief executive officer of Foamex said, "These non strategic businesses were a relatively small component of our overall portfolio and were not a part of our core urethane operations. We will continue to serve the rebond and prime segments of the overall carpet cushion market, which accounts for more than 85% of the national market.
"By concentrating on our core business, we will be better able to develop innovative products that meet the quality and performance standards of our customers. We intend to use the funds raised from this transaction to begin reducing our debt and debt carrying cost, consistent with our previously stated goals."
Related Topics:Leggett & Platt