Fabric Stitching: Tietex Interiors, Burlington in Merger
March 2, 2009-- Home Textiles Today,
Tietex International said it is selling its Tietex Interiors division, which sells a variety of fabrics to the residential and contract upholstery industries, clearing the way for a merger of the division and Burlington Mfg. Services.
The transaction was scheduled for late last week.
“Interiors and BMS are a perfect blending because domestically we’re able to bring together under one umbrella important vertical capabilities. In these uncertain economic times, we know our customers are looking for a partner to step up with product and programs that are reliable and verifiable,” said Mike Durham, Tietex Interiors president.
The agreement calls for a new entity to acquire the intellectual property of all current residential woven fabrics, certain woven contract patterns and the associated inventory of both market segments. In addition, the transaction includes the purchase of the 300,000-square-foot Williamsburg plant, looms and other capital equipment in Matkins, N.C.
Durham said Tietex Interiors’ sales agents would continue to sell Tietex residential pile products manufactured under Tietex’s Murena brand name.
Burlington Mfg. Services ceo Robert Sills said the alliance gives the company a capability to offer residential and contract customers an uninterrupted flow of fabrics.
“By being vertical, from raw materials to finished goods, we offer a reliable and secure supply chain that is refreshing news on the domestic front,” he said. “We are now in position to answer the need for short runs and reduced lead times, and to help take the pressure off the inventory and cost restraints facing today’s fabric customers.”
(Reported by Gary Evans, senior editor of HTT sister publication Furniture Today.)