CARTHAGE, Mo. -- Diversified manufacturer Leggett & Platt has announced that it has entered into a definitive agreement to acquire Elite Comfort Solutions, Inc. for $1.25 billion in cash. The transaction has been approved by the board of directors of Leggett & Platt and is expected to close in January 2019, subject to customary closing conditions and regulatory approvals.
ECS, a portfolio company of Arsenal Capital Partners, makes proprietary specialized foam technology primarily for the bedding and furniture industries. ECS's annual sales for the fiscal year ended September 30, 2018 were $611 million. With 16 facilities across the United States, ECS operates a vertically integrated model, producing specialty foam, developing many of the chemicals and additives used in foam production, and manufacturing private-label finished products. These specialty foam products include finished mattresses sold through both traditional and online channels, mattress components, mattress toppers and pillows, and furniture foams.
Karl G. Glassman, president and chief executive officer of Leggett & Platt, said, "Through the combination of Leggett & Platt and Elite Comfort Solutions, we will become the leading provider of differentiated products for the bedding industry and gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses.”
Following the closing of the transaction, ECS will become a separate business unit and operate within the Residential Products segment. The ECS management team will continue to lead the business. Leggett & Platt has a history of successfully acquiring and integrating companies and looks forward to welcoming ECS's team members to the Leggett & Platt family. Leggett & Platt plans to maintain all 16 of ECS's manufacturing and warehousing facilities.
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