Culp Home Fashions to operate B&H Knitted Mattress Fabric Biz
Culp Inc announced the acquisition of the knitted mattress fabrics operation of Bodet & Horst USA, LP ("B&H"). This business will be operated by Culp Home Fashions, the mattress fabrics division of Culp Inc. For the past six years, B&H has been the company's primary source of knitted mattress fabric, a product category that has grown substantially in recent years for Culp's mattress fabric business.
Pursuant to the terms of the purchase agreement, Culp is acquiring B&H's equipment, inventory and certain intellectual property. Culp will continue to manage the High Point manufacturing operation at the existing location with no production interruption or change in the day to day operations of the plant. The company is financing the purchase with a long term unsecured note with one of its current lenders, with no principal payment for three years.
Commenting on the announcement, Frank Saxon, president and chief executive officer of Culp, Inc., stated, "We are pleased to announce the acquisition of B&H and believe this transaction will further enhance Culp's strong service platform for our customers. Demand for this product line has grown significantly, as knits are increasingly being utilized on mattresses at volume retail price points. Mattress fabrics have been a driving force in Culp's business and accounted for 54 percent of the company's sales in the fourth quarter ended April 2008.
Additionally, we have recently completed a $5.0 million capital project to significantly strengthen our woven mattress fabrics manufacturing operations and provide further reactive capacity for servicing our customers. With this weaving expansion and the completion of the B&H acquisition, Culp Home Fashions has substantially increased its commitment to the bedding industry.
We are now positioned with a large and modern, vertically integrated manufacturing platform in all major product categories of the mattress fabrics industry. Our strategic focus in mattress fabrics continues to be providing our customers with outstanding delivery performance, quality, innovation and value."
"With this acquisition, Culp Home Fashions expects to improve upon supply logistics from pattern inception to fabric delivery, allowing accelerated responsiveness, stability and service for its customers," added Iv Culp, president of Culp Home Fashions. "We also look forward to extending our strong working relationship with B&H, one of the leading producers of knitted mattress fabrics, with operations in several European countries.
Going forward, we will continue to collaborate on manufacturing projects and supply each other with products in different parts of the world. Culp will also serve as the primary agent for B&H to distribute sewn covers and fire protectors/socks to the North American mattress trade. We now have the unique ability to leverage the strengths of both companies and pursue additional growth opportunities in the globalmattress fabrics business."