Company News
October 15, 2021
New Foam Line in SC
HFI subsidiary begins pouring foam in the U.S.
Home Textiles Today Staff // News & Commentary • October 13, 2021
David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic
Palmetto Pedic LLC, the two-year-old foam manufacturer owned by fabric and home fashions manufacturer Home Furnishing International, is unveiling a new line of conventional foam and memory foam for use in mattresses, foundations, upholstery and accessories.
“The combination of global supply chain difficulties and the imposition of anti-dumping duties means that there is a huge demand for foam and foam bedding products here in the U.S.,” said David Li, chairman and CEO of both Home Furnishing International and Palmetto Pedic. “We are offering an expansive selection of made-in-America products that will give major U.S. bedding suppliers innovative and sustainable choices and at the same time, alleviate many of the supply chain difficulties that have plagued the bedding market in recent months.”
Palmetto Pedic poured its first U.S.-made foam at its Gaffney, S.C. plant on Sept.17. The company currently has the capacity to produce 3,000 mattresses per day, and the recent purchase of a 350,000-square-foot plant in Blacksburg, S.C. will increase that capacity to 8,000 mattresses per day. The new Blacksburg plant is located just down the Interstate-85 highway corridor from the Gaffney plant, which will enable both plants to easily and efficiently collaborate on production runs.
Palmetto Pedic was formed in March 2019 as a joint venture between a group of private investors and Home Furnishing International, a privately held vertical fabric and home fashions supplier with annual sales estimated in excess of $200 million.
The buying power of both Home Furnishings International and its private investors also benefits Palmetto Pedic when it comes to negotiating for chemicals and other raw materials, according to Li.
“It is no secret that there have been major shortages of the chemicals used to make foam, which has led to delays and shortages in the mattress manufacturing sector,” Li states. “We are able to leverage the strong relationships that Home Furnishings International and our investors have with raw materials suppliers in order to ensure that we have a steady supply of the chemicals and other resources that we need for Palmetto Pedic.”
Palmetto Pedic is targeting the line to major U.S. bedding producers and upholstered furniture manufacturers, and will be meeting with customers in the showroom of its sister company, American Decorative Fabrics, located at 312 S. Hamilton St., Second Floor, Suite 201-D, in High Point.
October 12, 2021
Arsenal Makes Another Acquisition
Arsenal’s Applied Adhesives Acquires American Chemical MINNETONKA, Minn., October 12, 2021 — APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.
“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.”
For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”
American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.
Financing & Advisors Krahn Capital Group, LLC advised American Chemical in the transaction.
About APPLIED Adhesives APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.
About Krahn Capital Group, LLC Krahn Capital Group is a boutique investment banking firm specializing in mergers and acquisitions and capital advisory services for privately held businesses in the lower middle market. For more information, please visit www.krahncapitalgroup.com.
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.
October 12, 2021
Arsenal Makes Another Acquisition
Arsenal’s Applied Adhesives Acquires American Chemical MINNETONKA, Minn., October 12, 2021 — APPLIED Adhesives, a premier custom adhesive solutions provider in North America, today announced the acquisition of American Chemical, a regional supplier of adhesives and sealants located in Minneapolis, MN. APPLIED’s acquisition of American Chemical serves to strengthen its commitment of providing industry leading technical expertise and exceptional service to its customers.
“American Chemical has consistently delivered innovative solutions and exceptional value to its customers, which aligns with our culture of relentless customer focus,” said John Feriancek, president and chief executive officer of APPLIED Adhesives. “We look forward to welcoming American Chemical’s customers to the APPLIED family and providing them outstanding service, support, and value.”
For over 30 years, American Chemical has supported the needs of its customers through new product development and in-house lab services for unique applications. “I am very proud of American Chemical’s legacy of innovation and customer support,” said Dennis Werneke, former owner of American Chemical. “I’m excited that our customers will now have the opportunity to partner with APPLIED and their talented, customer-focused team of professionals. Our customers are in good hands.”
American Chemical is APPLIED Adhesives’ third acquisition in 2021 and its eighth in the last four years.
Financing & Advisors Krahn Capital Group, LLC advised American Chemical in the transaction.
About APPLIED Adhesives APPLIED Adhesives, founded in 1971, is a premier custom adhesive solutions provider for the packaging, paper converting, graphic arts, bottle labeling, product assembly, and automotive industries. The company is a value-added distributor of hot melt, water-based, and reactive adhesives as well as dispensing equipment. APPLIED Adhesives serves as a critical supply chain partner to leading adhesive manufacturers and formulators by offering reach and high service levels to an expansive customer base. For more information, please visit appliedadhesives.com.
About Krahn Capital Group, LLC Krahn Capital Group is a boutique investment banking firm specializing in mergers and acquisitions and capital advisory services for privately held businesses in the lower middle market. For more information, please visit www.krahncapitalgroup.com.
About Arsenal Capital Partners Arsenal is a leading private equity firm that specializes in investments in middle-market industrial growth and healthcare companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of $5.3 billion, has completed more than 200 platform and add-on investments, and achieved more than 30 realizations. Arsenal invests in industry sectors in which the firm has significant prior knowledge and experience. The firm works with management teams to build strategically important companies with leading market positions, high growth, and high value-add. Visit www.arsenalcapital.com.
October 11, 2021
Tempur Sealy Expansion
Breaking Ground
Dirt ceremonially turned on $138M Tempur Sealy plant
Dignitaries turn dirt at a groundbreaking ceremony for the Tempur Sealy plant on Thursday. Nick Hedrick/Journal Review Posted Friday, October 8, 2021 1:15 am
Scott Vollet, executive vice president of global operations for Tempur Sealy International, speaks at a groundbreaking ceremony for the Tempur Sealy plant on Thursday.
Nick Hedrick/Journal Review
The Crawfordsville and Montgomery County team did a very thorough job of assuring us that Tempur Sealy would be a good long term fit in the community.” Scott Vollet, Tempur Sealy International’s executive vice president of global operations
Ground was ceremoniously broken Thursday on Tempur Sealy’s $138 million foam pouring manufacturing facility near Crawfordsville, as local officials celebrated the global mattress company’s arrival as a transformative moment for Montgomery County.
The 754,000-square-foot plant, which will be the world’s largest Tempur Sealy facility, is slated to open in the spring of 2023. At least 350 workers are expected to be employed by 2025.
“Our community today is a place where folks like Tempur Sealy — a respected and revered company — want to be a part of,” John Frey, president of the Montgomery County Board of Commissioners, said during the ceremony.
“My message to all current business and industry leaders in our community: this is about you making the right decisions years ago to build your business in Montgomery County,” Frey added, “and the outside world still sees our community today just like you saw it years ago as the right place to be.”
The facility, which is being built on farmland between C.R. 250E and Nucor Road, will make bedding products and components. It will be Tempur Sealy’s third foam pouring facility in the United States. The company is currently recruiting managers and plans to open a recruitment and training center in Crawfordsville next year.
Tempur Sealy executives say the expansion to west central Indiana is proof of the company’s growth — from an upstart brand that struggled for retail floor space against more established names in the early 1990s to a top-seller of mattresses.
“You probably remember the commercials with the lady jumping up and down on the bed with a glass of wine. Well, that was Tempur 30 years ago,” said Cliff Buster, North America CEO for Tempur Sealy International.
As demand for the company’s products grew and executives realized the capacity of the two foam pouring facilities in Virginia and New Mexico would be exceeded, the search for space to build another plant got underway. Montgomery County was selected in June.
The plant will be built on 130 acres of land with the capacity to expand to 1 million square feet.
“The Crawfordsville and Montgomery County team did a very thorough job of assuring us that Tempur Sealy would be a good long term fit in the community,” said Scott Vollet, Tempur Sealy International’s executive vice president of global operations.
At the ceremony, Tempur Sealy announced the donation of a total 30 mattresses and pillows to the Crawfordsville Fire Department and Through the Gate, a Linden residential facility for women struggling with addictions.
Crawfordsville Mayor Todd Barton said the company was making a “huge investment” that will “propel them into the future” as a bedding industry leader.
“The sense of family in our community and in their company are remarkably similar, and the fit couldn’t be better,” Barton said.
U.S. Rep. Jim Baird (R-Greencastle), who was also on hand for the groundbreaking, praised the teamwork among local dignitaries to land the company.
“I really think it comes down to having the kind of attitude among our people — the work ethic and the can-do attitude that you have in Montgomery County and west central Indiana to bring this kind of economic base,” Baird said.
https://www.journalreview.com/stories/breaking-ground,170250
October 11, 2021
Tempur Sealy Expansion
Breaking Ground
Dirt ceremonially turned on $138M Tempur Sealy plant
Dignitaries turn dirt at a groundbreaking ceremony for the Tempur Sealy plant on Thursday. Nick Hedrick/Journal Review Posted Friday, October 8, 2021 1:15 am
Scott Vollet, executive vice president of global operations for Tempur Sealy International, speaks at a groundbreaking ceremony for the Tempur Sealy plant on Thursday.
Nick Hedrick/Journal Review
The Crawfordsville and Montgomery County team did a very thorough job of assuring us that Tempur Sealy would be a good long term fit in the community.” Scott Vollet, Tempur Sealy International’s executive vice president of global operations
Ground was ceremoniously broken Thursday on Tempur Sealy’s $138 million foam pouring manufacturing facility near Crawfordsville, as local officials celebrated the global mattress company’s arrival as a transformative moment for Montgomery County.
The 754,000-square-foot plant, which will be the world’s largest Tempur Sealy facility, is slated to open in the spring of 2023. At least 350 workers are expected to be employed by 2025.
“Our community today is a place where folks like Tempur Sealy — a respected and revered company — want to be a part of,” John Frey, president of the Montgomery County Board of Commissioners, said during the ceremony.
“My message to all current business and industry leaders in our community: this is about you making the right decisions years ago to build your business in Montgomery County,” Frey added, “and the outside world still sees our community today just like you saw it years ago as the right place to be.”
The facility, which is being built on farmland between C.R. 250E and Nucor Road, will make bedding products and components. It will be Tempur Sealy’s third foam pouring facility in the United States. The company is currently recruiting managers and plans to open a recruitment and training center in Crawfordsville next year.
Tempur Sealy executives say the expansion to west central Indiana is proof of the company’s growth — from an upstart brand that struggled for retail floor space against more established names in the early 1990s to a top-seller of mattresses.
“You probably remember the commercials with the lady jumping up and down on the bed with a glass of wine. Well, that was Tempur 30 years ago,” said Cliff Buster, North America CEO for Tempur Sealy International.
As demand for the company’s products grew and executives realized the capacity of the two foam pouring facilities in Virginia and New Mexico would be exceeded, the search for space to build another plant got underway. Montgomery County was selected in June.
The plant will be built on 130 acres of land with the capacity to expand to 1 million square feet.
“The Crawfordsville and Montgomery County team did a very thorough job of assuring us that Tempur Sealy would be a good long term fit in the community,” said Scott Vollet, Tempur Sealy International’s executive vice president of global operations.
At the ceremony, Tempur Sealy announced the donation of a total 30 mattresses and pillows to the Crawfordsville Fire Department and Through the Gate, a Linden residential facility for women struggling with addictions.
Crawfordsville Mayor Todd Barton said the company was making a “huge investment” that will “propel them into the future” as a bedding industry leader.
“The sense of family in our community and in their company are remarkably similar, and the fit couldn’t be better,” Barton said.
U.S. Rep. Jim Baird (R-Greencastle), who was also on hand for the groundbreaking, praised the teamwork among local dignitaries to land the company.
“I really think it comes down to having the kind of attitude among our people — the work ethic and the can-do attitude that you have in Montgomery County and west central Indiana to bring this kind of economic base,” Baird said.
https://www.journalreview.com/stories/breaking-ground,170250
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