Leggett & Platt Announces Divestiture of Store Fixtures Operations

CARTHAGE, Mo., Nov. 3, 2014 /PRNewswire/ -- Diversified manufacturer Leggett & Platt today announced the sale of the majority of its Store Fixtures operations to Lozier Corporation for total consideration of approximately $62 million.  These operations, located in Middlebury, IN, Fort Worth, TX, and Union, MO, represent approximately three-quarters of the business unit's revenues, and manufacture custom-designed, complete store fixture packages for major retailers, including metal and wood shelving, counters, and showcases.  Lozier Corporation, based in Omaha, NE, is an industry leader in the design and production of store fixture solutions.

In July, Leggett & Platt announced that it had engaged an investment banker and was exploring strategic alternatives for the Store Fixtures business, including possible divestiture.  All of the criteria for discontinued operations have been met, and the business was classified as a discontinued operation in the third quarter.  The company expects the divestiture to result in an approximate $.04 per share loss in the fourth quarter, which will be recognized in discontinued operations.  The company continues to pursue the sale of its two remaining Store Fixtures facilities.

Board Chair and CEO David S. Haffner commented, "We are very pleased to have completed the sale of the majority of our Store Fixtures operations in an expedient manner.  A major component of our strategy, since 2007, has been the optimization of our portfolio of businesses.  We remain committed to improving or exiting businesses that consistently underperform our margin and return on capital expectations, and to identifying carefully screened growth opportunities that are very likely to meet or exceed our minimum financial requirements."

FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer (and member of the S&P 500) that conceives, designs and produces a variety of engineered components and products that can be found in most homes, offices, and automobiles. The 131-year-old firm is comprised of 18 business units, 19,000 employee-partners, and 130 manufacturing facilities located in 18 countries.

Leggett & Platt is the leading U.S. manufacturer of: a) components for residential furniture and bedding; b) office furniture components; c) drawn steel wire; d) automotive seat support and lumbar systems; e) carpet underlay; f) adjustable bed bases; g) bedding industry machinery.

FORWARD-LOOKING STATEMENTS: Statements in this release that are not historical in nature are "forward-looking." These statements are identified either by the context in which they appear or by use of words such as "expected" or "expects."  These statements involve uncertainties and risks, including the preliminary nature of estimates related to goodwill impairment and the possibility that the estimates may change as the company's analysis develops and additional information is obtained, the possibility of long-lived asset impairment associated with the Store Fixtures business, the pursuit of different strategic alternatives for the Store Fixtures business, 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 [email protected]
 - David M. DeSonier, Senior Vice President of Strategy and Investor Relations
 - Susan R. McCoy, Vice President of Investor Relations

SOURCE Leggett & Platt

Related Links

http://www.leggett.com

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED