Engineered components producer Leggett announces five acquisitions
13 Oct '05
3 min read
Diversified manufacturer Leggett & Platt (L&P) announced five acquisitions. Collectively, these acquisitions should add about $85 million to annual company revenues, and also provide approximately $20 million of store fixtures manufacturing in Asia.
Ikex / Jarex Early in October the company acquired the assets of Ikex Inc and the membership interests of Jarex Distribution LLC, which should add almost $65 million in annual sales to the Residential Furnishings segment. This acquisition significantly enhances Leggett's presence in the converting and/or distribution of geotextiles, erosion control products and silt fencing for the geotextile, landscape, and agricultural markets.
Geotextiles are synthetic fabrics (typically polypropylene, polyethylene or polyester) used in a variety of landscaping applications including ground stabilization, drainage protection, erosion control and weed control. The highly-fragmented market for geotextiles is believed to approximate $900 million annually, and contains mostly small, regional suppliers.
Shanghai Fixtures Facility The company also is acquiring a store fixtures manufacturing facility in Shanghai, China. This facility, which has been a key supplier to Leggett's US operations, manufactures a broad line of retail store fixtures and gondola shelving. Its acquisition will enhance Leggett's production of store fixtures by about $20 million; however, since nearly the facility's entire product is sold to L & P for distribution in the US, near-term annual sales revenues will be unchanged.
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