From Home Furnishing Business
Leggett & Platt Sells Foam Operation
By Home Furnishings Business in Mattresses on April 2007
Leggett & Platt, Carthage, Mo., announced Tuesday that it has sold its Prime Foam operations to Comfort Co., a company controlled by Catterton Partners, a private equity firm based in Greenwich, Conn.
Leggett & Platt expects a pre-tax gain of $24 million from the sale of the business that had 2006 revenues of approximately $200 million. The deal is the largest divestiture in Leggett & Platts history. The Prime Foam operation mainly produces foam used in cushioning in upholstered furniture and mattresses. The company will continue to produce foam used in carpet underlay.
President and CEO David S. Haffner said, This divestiture is consistent with our previously stated intention to actively manage our portfolio of businesses. We will continually evaluate the strategy and competitive positions of our individual businesses, and plan to participate only in markets in which we can be a market leader and generate an attractive cash flow return on investment ... Although the business is performing well and has some opportunity for growth, our market position is small and the business is not strategic to Leggett.