Leggett & Platt selling Prime Foam unit
April 5, 2007-- Home Textiles Today,
Carthage,Mo.— Components supplier Leggett & Platt will sell its Prime Foam operations and exit the polyurethane foam business for furniture and bedding. David Haffner, 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.
The sale, which has annual revenues of about $200 million, represents the largest divestiture in Leggett’s history. The foam supplier’s new owner is Comfort Co., which is controlled by the Greenwich, Conn.,-based private equity firm Catterton Partners.
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.
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