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Empire News: Press Release
Empire Investment Holdings Completes Carve-Out Of Polyester Fibers From Leggett & Platt
Miami, Florida, October 19, 2009 (Business Wire) - Empire Investment Holdings ("Empire"), a private investment firm, announced today that its portfolio company, Polyester Fibers, has completed the carve-out process from Leggett & Platt ("L&P"). Empire and L&P entered into a twelve (12) month transition services agreement, which included services related to accounting, treasury, logistics, IT, global services and the use of L&P's manufacturing resource planning (MRP) and financial application. It is common for Empire to acquire businesses that lack certain essential elements that form a standalone enterprise.
A critical component to assessing this acquisition was an understanding of the various limitations resulting from an incomplete management team and the lack of a comprehensive operationalinfrastructure. Since the closing, Polyester Fibers' business has maintained continuity, without any disruption to customer service or the delivery of its products worldwide.
"Our team has completed this complex extraction from the L&P platform two months ahead of schedule," said David F. Alfonso, Empire Investment Holdings' chairman and chief executive officer. "Through the course of the due diligence process, we were able to see beyond the challenges related to this extensive carve-out and identified significant opportunities to unlock value."
"It was a pleasure to work with Empire through the transition process," said Russell Iorio, Leggett & Platt's vice president - mergers & acquisitions. "Empire was very thorough in their preparation before the divestiture closed, which resulted in a smooth transition of the business post closing. Additionally, Empire met its timetable to transition to its own G&A services from Leggett & Platt's corporate services, which was important to us."
Immediately post close, Empire deployed its full fledged operational transition team to the acquired units' multiple locations, with the focus on enhancing executive leadership, improving operational efficiencies, achieving strategic growth and creating a standalone infrastructure. The overall transition and carve-out process lasted approximately ten (10) months. During this time, Empire stabilized the customer and employee bases, while increasing market share during unprecedented economic times for not only Polyester Fibers, but for its customers and vendors as well.
"This acquisition fit perfectly with Empire's investment profile and now represents a flagship enterprise for our firm," said Alfonso. "It boasts an expansive manufacturing footprint and distribution model that delivers well known brands to a mature and established customer base."
About Empire Investment Holdings
Empire Investment Holdings ("Empire") is a private investment firm focused exclusively on the acquisition and strategic management of non-core business units from the Fortune 1000. Empire adheres to a well defined and focused acquisition strategy that is driven by the firm's history in acquiring, operating and managing over 50 corporate divestitures across several industries. Empire's approach is specialized in addressing the complexities of acquiring non-core business units, as well as ensuring post close business continuity. Today, Empire’s portfolio is comprised of 7 operating companies, serving over 10,000 customers worldwide, with an international footprint of 25 facilities encompassing over one million square feet of space and over 1,000 employees.
About Polyester Fibers, LLC
Polyester Fibers 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 5 operating units: Tupelo Fibers, Cameo Fibers, Cumulus Fibres, Mountain Mist and Buffalo Batt, has more than 450 employees serving thousands of customers in the United States, Canada, and Europe. For additional information please visit www.poly-fibers.com.
About Leggett & Platt, Incorporated
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 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 126-year-old firm is comprised of 19 business units, 19,000 employee-partners, and more than 160 manufacturing facilities located in 18 countries.
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