From Home Furnishing Business
Culp to Acquire Hospitality, Commercial Market Supplier
Fabric supplier Culp Inc. (NYSE: CULP) said it has signed a definitive agreement to acquire Read Window Products, a producer of custom window treatments and other products for the hospitality and commercial markets.
The purchase price wasn’t available, but Culp said the deal would be funded with cash and investments on hand, and would not require additional debt. The closing is expected by the end of March.
Based in Knoxville, Tenn., Read Window Products is a turn-key provider of window treatments, offering measuring, sourcing, fabrication and installation services. Its primary custom product line includes motorization, shades, drapery and shower curtains.
In addition, the company supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters and pillows for leading hospitality brands worldwide.
The company has been in business since 1981, with annual revenues of approximately $11.0 million in 2017, Culp said.
“We have been seeking the right strategic business opportunity to support our growing sales of upholstery fabrics designed for the hospitality market,” said Frank Saxon, Culp’s president and CEO. “We believe this additional product line will complement our existing upholstery fabrics business and enhance our ability to expand our sales and reach additional customers in the hospitality market. Read Window Products is already solidly profitable with operating margins in line with our current upholstery fabrics business.”
He added that the acquisition presents “a unique opportunity to combine our outstanding design capabilities with another established business that enjoys a solid reputation in the hospitality market.
Dale Read, CEO of Read Window Products, added, “We believe this is a great opportunity for Read Window Products, and we look forward to joining the Culp team. Our companies have similar family cultures and values with a shared commitment to product excellence and outstanding customer service. Together, we will be uniquely positioned to offer the full complement of high quality, decorative fabrics used inside a hotel room.”