In a move to spin off "a relatively small component of our overall portfolio," Foamex International said it has sold its rubber and felt carpet cushion businesses to Leggett & Platt for $38.5 million. The deal includes the Cape Girardeau, Mo., rubber manufacturing facility and certain assets of the Newton, N.C., felt manufacturing facility. Foamex said it will use the proceeds to pay down debt.
Foamex assured that it will continue to offer prime and rebond polyurethane carpet cushion and flooring underlay products through its carpet cushion division. Commenting on the transaction, Tom Chorman, president and CEO of Foamex said, "By concentrating on our core business, we will be better able to develop innovative products that meet the quality and performance standards of our customers."