Foamex sells rubber & felt carpet cushion biz to Leggett & Platt for $38.5 mil
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, "These non-strategic businesses were a relatively small component of our overall portfolio and were not a part of our core urethane operations. We will continue to serve the rebond and prime segments of the overall carpet cushion market, which accounts for more than 85 percent of the national market. 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. We intend to use the funds raised from this transaction to begin reducing our debt and debt carrying cost, consistent with our previously stated goals."
Foamex also announced that its annual shareholders' meeting is slated for May 19, 2005 in Wilmington, Del.
Foamex, headquartered in Linwood, Pa, produces comfort cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries.