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From Home Furnishing Business

Burlington Technologies Buys Keystone Weaving

August 27, 2014  by in Acquisition, Industry   

Miami, Fla.-based private investment firm Banyan, the majority shareholder of Burlington Technologies, announced the asset-based transaction, which included the purchase of jacquard and dobby looms, related textile weaving equipment, the Keystone Brand, and Keystone’s business for both home fabrics and apparel fabrics markets.

The core weaving businesses for Burlington Technologies' two flagship companies, Se7en and Bentex, primarily use synthetic yarns to manufacture their fabrics. Keystone, Lebanon, Pa., relies upon natural fiber yarns such as cotton, linen and wool.

“There is enormous upside to this merger," said Mike Durham, president of Gibsonville, N.C.-based Burlington Technologies. "While KW and Se7en sell products to some of the same customers, they do not overlap due to the variation of construction each company utilizes. Keystone's product mix is evenly distributed between jacquards, textures and plain fabrics. As a result, the large infusion of Dobby looms into the existing BT equipment mix provides an enormous opportunity for an even greater array of fabrics for Se7en and Bentex.”

Sloan Caplan, president of Keystone stated that his family has been in the weaving business for more than 80 years, and they have decided to apply their energies to other interests.

"We have been extremely pleased with our growth in the home fabrics arena, but my father (Eli Caplan) and uncle (Perry Caplan) and I felt it was a good time to sell," Caplan said.

Along with the purchase, several key members of the KW management team will join BT. Members of operations, design, finance, and customer service have elected to move with the new company. Initially, 25 new jobs are being created, and with the planned growth, more are expected to follow.

Ray McKinnon will join BT as vice president of merchandising and will oversee the function for both Se7en and Keystone. She previously served as merchandising consultant for Keystone. In her new role, she will be responsible for each division's brand development and recognition, as well as provide leadership and guidance for product development.

Bob McKinnon, former CEO of CV Industries and more recently a consultant for KW, has been named chairman of BT.

"It is timely and positive for all concerned," Bob McKinnon said. "Being affiliated with Eli Caplan and his family was a very rewarding experience because he not only is a very good person, but had the courage to resurrect his family's 80-year-old business at a time when the economy was in a very poor condition.

“BT'S 300,000-square-foot weaving operation is one of the best in the U.S. as it provides tremendous fabric design flexibility and exciting and creative options for our customers. We are planning and working diligently to make this merger seamless so that we can meet and surpass our customers' expectations. Everyone in our organization is convinced that Banyan is totally committed to helping us be the best. Plans are to begin relocating looms in early September and complete the project by late November. Special care is being taken to have a continuation of Keystone fabrics being woven during this process.”

"The joining together of three excellent weavers is in perfect step with the 'on-shoring' process that is taking place in the home fabrics and furnishings arena," said Banyan Chairman John Miller. "Our challenge is to take advantage of the opportunities awaiting us and our competitors.”

Se7en, Bentex and Keystone will remain as independent divisions and maintain the integrity of their product characteristics, although Ray McKinnon will interface with all. Sales staffs and showrooms also will remain independent.

Corporate headquarters and weaving manufacturing will remain at the Burlington Technologies facility in Gibsonville, N.C.