Diversified manufacturer Leggett & Platt today announced that it has completed its previously announced acquisition of Elite Comfort Solutions, Inc. (ECS) for $1.25 billion in cash. The transaction was financed through the expansion of the company's commercial paper program and the issuance of a $500 million 5-year term loan with its current bank group.
"We are pleased to announce the completion of the Elite Comfort Solutions acquisition. Through this acquisition, we gain critical capabilities in proprietary foam technology, along with scale in the production of private-label finished mattresses," said Karl G. Glassman, President and Chief Executive Officer of Leggett & Platt. "Our combined expertise in spring and foam technology makes us the leading provider of differentiated products for the global bedding industry and positions us to capitalize on current and future market trends. Those trends include the growth of hybrid spring and specialty foam mattresses, growth of the e-commerce mattress channel, the increased demand for compressed mattresses sold both online and through traditional retail channels, and the emergence of numerous compressed mattress brands. Together with ECS, we have the capability to supply components or private-label finished goods for nearly any mattress type, packaging form, or distribution channel. The talented employees at ECS have built a truly exceptional business, and we look forward to working with them to better serve our customers and achieve continued success."
As previously announced, 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 plans to maintain all 16 of ECS's facilities.