CARTHAGE, MO- Store fixture, furniture and wood components manufacturer Leggett & Platt says it sold its storage products business to SPG International, LLC, a Canadian manufacturer of tool boxes and other metal storage products. Leggett & Platt says the the sale represents the conclusion of its divestiture program, first announced in November 2007.
Leggett has sold seven business units for a combined $433 million. The 127-year-old firm is comprised of 19 business units, 20,000 employee-partners, and more than 140 manufacturing facilities located in 18 countries. Leggett & Platt says it is the leading U.S. manufacturer of components for office and residential furniture and bedding; power foundations; and bedding industry machinery.
In late 2007 Leggett & Platt decided to narrow its focus and eliminate approximately 20% of its revenue base. During 2008 it divested five of seven targeted business units; a sixth unit was sold during 2009. The company says sale of its storage systems unit, just announced, ended its divestiture program.
In late 2008 Leggett & Platt says it concluded that its store fixtures business unit could not deliver adequate return on investment. It decided to narrow the scope of the store fixtures unit to concentrate primarily on the metals part of its industry, eliminated production facilities, effected changes to senior management, reduced overhead, and purged unprofitable accounts.
Separately, Leggett & Platt has launched a consumer-oriented social media campaign to drive demand for its mattress-related products. It leads off with a "Virgin Mattress" Youtube video competition.>>
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