CARTHAGE, MO -- Diversified manufacturer Leggett & Platt today announced the sale of the majority of its Store Fixtures operations to Lozier Corporation for total consideration of approximately $62 million. These operations, located in Middlebury, IN, Fort Worth, TX, and Union, MO, represent approximately three-quarters of the business unit's revenues, and manufacture custom-designed, complete store fixture packages for major retailers, including metal and wood shelving, counters, and showcases. Lozier Corporation, based in Omaha, NE, is an industry leader in the design and production of store fixture solutions.
In July, Leggett & Platt announced that it had engaged an investment banker and was exploring strategic alternatives for the Store Fixtures business, including possible divestiture. All of the criteria for discontinued operations have been met, and the business was classified as a discontinued operation in the third quarter. The company expects the divestiture to result in an approximate $.04 per share loss in the fourth quarter, which will be recognized in discontinued operations. The company continues to pursue the sale of its two remaining Store Fixtures facilities.
Board Chair and CEO David S. Haffner commented, "We are very pleased to have completed the sale of the majority of our Store Fixtures operations in an expedient manner. A major component of our strategy, since 2007, has been the optimization of our portfolio of businesses. We remain committed to improving or exiting businesses that consistently underperform our margin and return on capital expectations, and to identifying carefully screened growth opportunities that are very likely to meet or exceed our minimum financial requirements."
Sale is effective November 1, 2014
Source: Leggett & Platt/PRNewswire
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