Kluft Acquires Park Place Pa. Plant

May 10, 2011  by in UnCategorized   

By Home Furnishings Business in Acquisition on May 11, 2011

E. S. Kluft & Co., manufacturer of Aireloom and Kluft brand mattresses, will acquire Park Place Corp.'s plant and distribution center in Denver, Pa.

Terms of the deal on the 86,000-square-foot facility, which should close late this month, were not disclosed.

After retrofitting and training for its production processes, Rancho Cucamonga, Calif.-based Kluft will retain approximately 40 employees. Kluft will use the facility to service dealers in the eastern and central portions of the United States. The plant, located in central Pennsylvania near Lancaster, was originally built in the 1970s. Park Place purchased it in 2007 and has used it as a satellite-manufacturing center from its main base in Greenville, S.C.

For Kluft, the acquisition of the Pennsylvania plant will provide the delivery lead time needed to properly service current and prospective customers in the eastern portion of the country who until now were relying on deliveries from its Southern California facility.

"Kluft and Aireloom brands are so unique in the industry that there has been growing interest by high-quality retailers who have wanted to carry the brands but were hesitant to make a commitment because we were only producing in California," said E. S. Kluft & Co. President and CEO Earl Kluft. "This new facility changes all that as we can very efficiently and effectively service these accounts. It will open many new retail doors for us.

"As our brands continue to grow nationally, we needed an eastern facility to reach new prospects more effectively and to better service the growing needs of our dealers there. The Pennsylvania plant is strategically located next to major highways and has a wonderful workforce steeped in a great culture of producing quality bedding. We expect to complete our due diligence over the next few weeks and close the transaction quickly so we can begin production shortly."

For Park Place Corporation, the sale realigns the company's manufacturing and distribution with the area of responsibility under the license agreement signed with King Koil Licensing Co. last August.

"We are very pleased that our (Pennsylvania) associates will continue in the mattress making profession," said Park Place Corp. President Jimmy Orders. Earl Kluft is a quality and design leader with a long-term commitment to the industry."