Leggett & Platt Acquires America's Body Company
CARTHAGE, Mo., Oct. 31 /PRNewswire-FirstCall/ --
-- Third-largest acquisition ever, with approximately $150 million of
revenue.
-- Joins with current operations to form new business group comprising
$250 million of revenue.
Diversified manufacturer Leggett & Platt announced the acquisition of America's Body Company (ABC), a designer, manufacturer, and supplier of equipment for vans and light-to-medium duty commercial trucks. ABC's main product categories include van interiors, van bodies, flatbed truck bodies, utility work bodies, dump truck bodies, and snow and ice control equipment. With annual revenue of approximately $150 million, this acquisition is the third-largest in Leggett's history. ABC has approximately 580 employees and ten operating facilities; proprietary products represent about 40% of current sales.
With this acquisition Leggett will become the second-largest supplier in the $1.5 billion U.S. market for light and medium duty commercial truck equipment. While the industry is highly fragmented, and contains many small, regional manufacturers, only a few competitors can provide as wide a range of products and service locations.
ABC, which has been using Leggett components, will join Leggett's current van interiors operations to form a new business group. There will be opportunities to consolidate operations, reduce administrative overhead, gain purchasing leverage, and penetrate additional geographic markets. The newly formed business group, Leggett's 11th, should generate revenue of approximately $250 million. The group will be titled the Commercial Vehicle Products Group, and will reside in the Specialized Products segment, which also contains the company's machinery and niche automotive groups. Jack D. Crusa, Senior Vice President of Leggett and head of the Specialized Products segment, will oversee the integration and operation of this new business.
FOR MORE INFORMATION: Visit Leggett's website at http://www.leggett.com .
COMPANY DESCRIPTION: Leggett & Platt (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 virtually every home, office, retail store, and automobile. The company serves a broad suite of customers that comprise a "Who's Who" of U.S. manufacturers and retailers. The 122-year-old firm is composed of 29 business units, 33,000 employee- partners, and more than 300 facilities located in over 20 countries. Leggett & Platt is North America's leading independent manufacturer of the following: a) components for residential furniture and bedding; b) retail store fixtures and point of purchase displays; c) components for office furniture; d) non-automotive aluminum die castings; e) drawn steel wire; f) automotive seat support and lumbar systems; g) carpet underlay; h) adjustable beds; and i) bedding industry machinery for wire forming, sewing and quilting. Primary raw materials include steel and aluminum. Main operations include metal stamping, forming, casting, machining, coating, welding, wire drawing, and assembly.
FORWARD-LOOKING STATEMENTS: Statements in this release that are not historical in nature are "forward-looking." These statements involve uncertainties and risks, including the company's ability to improve operations and realize cost savings, price and product competition from foreign and domestic competitors, changes in demand for the company's products, cost and availability of raw materials and labor, fuel and energy costs, future growth of acquired companies, general economic conditions, foreign currency fluctuation, litigation risks, and other factors described in the company's Form 10-K. Any forward-looking statement reflects only the company's beliefs when the statement is made. Actual results could differ materially from expectations, and the company undertakes no duty to update these statements.
CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com
David M. DeSonier, Vice President, or Susan R. McCoy, Director SOURCE Leggett & Platt
CONTACT:
Investor Relations, David M. DeSonier, Vice President,
or
Susan R. McCoy, Director,
both of Leggett & Platt,
417-358-8131, or
invest@leggett.com
Web site: http://www.leggett.com
(LEG)