Leggett Acquisition Program Continues
Carthage, MO - Leggett & Platt today announced that it recently acquired four businesses - two that manufacture and market commercial fixtures and displays and two that manufacture and market aluminum die castings. Combined, the four businesses will add about $80 million to Leggett's annual sales. In addition, they all have excellent growth records and Leggett management believes their prospects for future profitable growth are attractive. They were all privately owned prior to joining Leggett.
Amco Corporation of Chicago, Illinois became a Leggett company yesterday and has annual sales of about $33 million. Amco primarily manufactures and markets "high end" customized shelving and storage fixtures for foodservice, material handling and office use. Amco also designs and sells a rapidly growing line of commercial and consumer kitchen tools and utensils.
The second business, Rodgers-Wade Manufacturing Company of Paris, Texas, joined Leggett last week and has annual sales of approximately $25 million. Rodgers-Wade designs and manufactures custom and semi-custom store fixtures. Most of its products are made of laminated wood and used as display cases, shelving and counters in video stores and other retail outlets.
Both of these acquisitions confirm Leggett's continuing belief that niche markets for commercial fixtures and displays provide an excellent platform for internal and external growth. In recent years, Leggett has expanded its product offerings and geographic presence in these markets five-fold through business combinations with Excell Store Fixtures and Slot All Limited, International Storage Systems, SEMCO, Talbot Industries and Gor-Don Manufacturing Company. Leggett's Masterack Division has also long been a leading producer of point-of-purchase store displays and wire and metal shelving for other commercial applications. Thus, Amco and Rodgers-Wade fit well with and are natural complements to these operations.
Leggett more than doubled a second key platform for profitable growth by merging with Pace Industries in May 1996. At that time, management emphasized its belief that the Leggett/Pace operations had attractive internal and external growth opportunities. Continuing acquisition initiatives resulted in two related businesses, Latrobe Plastics Company and Airo Die Casting of Loyalhanna, Pennsylvania, joining the Leggett/Pace aluminum operations near the end of November.
Latrobe and Airo, the other two recently acquired businesses, have combined annual sales of about $22 million. They have achieved substantial growth in recent years by concentrating on the production and sales of aluminum die castings used by companies that manufacture telecommunications and consumer electronics equipment. In addition, Latrobe designs and makes tools and dies and machining centers. This acquisition not only expands the product offerings of the Leggett/Pace aluminum operations, but also extends their geographic presence and critical mass into the Northeast with a well established and highly successful business.
Headquartered in Carthage, Missouri, Leggett & Platt is a leader in manufacturing and marketing engineered products for furnishings and specialty industrial markets. The company has facilities throughout North America and in several locations in Europe. As previously reported, Leggett's sales for the trailing 12 months ended September 30, 1996 were a record $2.4 billion. Earnings per share for this 12 month period were a record $1.73, before $.32 in non-recurring costs associated with the Pace acquisition. Leggett's common stock is listed on the New York and Pacific Stock Exchanges with the symbol LEG.