Lazard Middle
Market Advised Leggett & Platt
on its Divestiture of
Polyester Fibers to Empire Investment
Holdings
TRANSACTION
DESCRIPTION
Lazard Middle Market
advised Leggett & Platt, Incorporated (“L&P”) on its divestiture
of Polyester Fibers, LLC (“Polyester Fibers”) to Empire Investment
Holdings (“Empire”). Polyester Fibers, a wholly-owned subsidiary of
L&P is one of the largest manufacturers and distributors of
value-added, high-loft nonwoven materials for the bedding, furniture,
filtration, and retail marketplace.
TRANSACTION HIGHLIGHTS
“Polyester Fibers has a rich history, and through
several years of strategic acquisitions and organic growth, is the market
leader within its core end markets,” said David F. Alfonso, chairman and
chief executive officer of Empire Investment Holdings. “We are excited
about the company's future, and the inherent ability to unlock additional
value through Empire's proven operational expertise by working closely
with the Fibers team, as well as its customers and vendors.”
“We
appreciate Empire's thorough and flexible approach to this divestiture and
believe they are the right acquirer for this business,” said David S.
Haffner, president and chief executive officer of L&P.
“We
value our relationship with Leggett & Platt and are proud to have
helped them realize significant shareholder value through the sale of
three businesses in the past two years. Empire will be an excellent
partner for the Polyester Fibers management team in growing the
business and we wish them the best,” said Barry D. Freeman, a
Managing Director with Lazard Middle Market.
Polyester Fibers has
more than 450 employees serving thousands of customers in the United
States, Canada, and Europe, with annual revenues of approximately $100
million. The acquisition includes over a million square feet of space
comprised of the company's headquarters and administrative office, 9
manufacturing plants and 2 distribution centers located in New York, North
Carolina, Ohio, Tennessee and Mississippi. It also holds strategic
partnerships with 4 manufacturing plants located in China.
As an Empire company, Polyester Fibers will
stay focused on providing the highest quality and innovation in nonwoven
fibers and unmatched customer service. The company
will operate as 4 distinct operating units, led by its
own management team.
THE COMPANY
Polyester Fibers,
LLC is the largest and most flexible manufacturer and distributor of
value-added, high-loft nonwoven materials for the bedding, furniture,
filtration, craft, and seasonal markets in the United States. The company,
comprised of 4 operating units; Tupelo Fibers, Cameo Fibers, Cumulus
Fibres and Buffalo Batt, has more than 450 employees serving thousands of
customers in the United States, Canada, and Europe.
THE SELLER
Leggett &
Platt, Incorporated (www.leggett.com) (NYSE:LEG) is a FORTUNE
500 diversified manufacturer that conceives, designs and produces a broad
variety of engineered components and products that can be found in most
homes, offices, and automobiles. The company serves a broad suite of
customers that comprise a “Who's Who” of U.S. manufacturers and retailers.
The 125-year-old firm's continuing operations are composed of 21 business
units, 24,000 employee-partners, and more than 250 facilities located in
20 countries.
THE
BUYER
Empire Investment Holdings (www.empireih.com) is a private
investment firm focused exclusively on the acquisition and strategic
management of non-core business units from the Global 2000. Empire adheres
to a well defined and focused acquisition strategy that is driven by the
firm's history in acquiring, operating and managing over 40 corporate
divestitures across several industries. Empire's approach is specialized
in addressing the complexities of acquiring corporate divestitures, as
well as ensuring post close business continuity. With the addition of
Polyester Fibers, Empire Investment Holdings portfolio is now comprised of
6 operating units, with close to 1,000 employees.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market
LLC (www.lazardmm.com), a subsidiary
of Lazard Ltd (NYSE:LAZ), provides advice on mergers and acquisitions,
restructuring, and financings to the middle market. Lazard Middle Market’s
approximately 100 investment bankers operate from offices in
Minneapolis, New York, Chicago, Charlotte and Los Angeles with
full access to the industry expertise, senior board-level relationships,
and local perspectives of Lazard’s bankers in 41 cities
across 24 countries in North America, Europe, Asia,
Australia, and Central and South America.
If you would like more information about this
transaction, please contact:
Barry Freeman
barry.freeman@lazardmm.com
312-928-0760
