Company News
January 24, 2020
Tempur Sealy to Buy OEM Bedding Company
All of those bed in a box marketing companies have to get the mattresses from somewhere!
Tempur Sealy To Acquire Majority Stake In Sherwood Bedding
PR NewswireLEXINGTON, Ky., Jan. 24, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Company” or “Tempur Sealy”) today announced that it has signed a definitive agreement to acquire a majority ownership interest in a newly formed limited liability company which will contain at closing substantially all of the assets of Sherwood Acquisition Holdings, LLC (“Sherwood Bedding”), a leading manufacturer in the U.S. private label/original equipment manufacturer (“OEM”) bedding market. Sherwood Bedding operates four manufacturing facilities and is a top 10 U.S. bedding producer. Tempur Sealy’s expected stake in Sherwood Bedding will mark the Company’s entrance into the private label category, creating a complete suite of product offerings ranging from Sherwood Bedding’s non-branded private label products to the Company’s well-known branded products, including Tempur-Pedic®, Sealy®, and Stearns & Foster®.
The Company expects to purchase an 80% stake in Sherwood Bedding for approximately $40 million. The transaction will be financed through a combination of cash on hand and a borrowing under its existing credit facilities. The Ellman Family, a third-generation bedding manufacturer, will maintain a 20% ownership interest in Sherwood Bedding. Sherwood Bedding will be operated as a standalone, independent business unit within the Company and will continue to be led by its current management team. The transaction is expected to close within the first quarter of 2020.
Sherwood Bedding is a low-cost, high-value producer of private label and OEM products for third-party retailers and in the contract bedding market. Sherwood Bedding has estimated annual wholesale revenues of over $150 million and expects to fund its own future growth and be accretive to the Company’s earnings in 2020. The Company believes that over time cost synergies can be realized to benefit all brands and customers. No personnel reductions are expected.
Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, “Over the past nine years Sherwood Bedding has grown to become one of the most respected bedding producers in the industry. Sherwood Bedding’s flexible and efficient operating model, focused primarily on value and high velocity price points, complements Tempur Sealy’s iconic brands, powerful distribution model, and supply chain. Together, we believe that we can build upon existing relationships to deliver more compelling products, branded and non-branded, than either business could on its own.”
Sherwood Bedding Co-President Neil Ellman commented, “With Tempur Sealy being the dominant player in the U.S. bedding industry, we believe we have the perfect partner to acquire market share in the private label sector. The complementary knowledge and market-fit of the companies as well as the ability to improve upon our low-cost structure delivers a unique opportunity and provides us with a sustainable competitive advantage.”
https://seekingalpha.com/pr/17759025-tempur-sealy-to-acquire-majority-stake-in-sherwood-bedding
January 24, 2020
Tempur Sealy to Buy OEM Bedding Company
All of those bed in a box marketing companies have to get the mattresses from somewhere!
Tempur Sealy To Acquire Majority Stake In Sherwood Bedding
PR NewswireLEXINGTON, Ky., Jan. 24, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) (NYSE: TPX, “Company” or “Tempur Sealy”) today announced that it has signed a definitive agreement to acquire a majority ownership interest in a newly formed limited liability company which will contain at closing substantially all of the assets of Sherwood Acquisition Holdings, LLC (“Sherwood Bedding”), a leading manufacturer in the U.S. private label/original equipment manufacturer (“OEM”) bedding market. Sherwood Bedding operates four manufacturing facilities and is a top 10 U.S. bedding producer. Tempur Sealy’s expected stake in Sherwood Bedding will mark the Company’s entrance into the private label category, creating a complete suite of product offerings ranging from Sherwood Bedding’s non-branded private label products to the Company’s well-known branded products, including Tempur-Pedic®, Sealy®, and Stearns & Foster®.
The Company expects to purchase an 80% stake in Sherwood Bedding for approximately $40 million. The transaction will be financed through a combination of cash on hand and a borrowing under its existing credit facilities. The Ellman Family, a third-generation bedding manufacturer, will maintain a 20% ownership interest in Sherwood Bedding. Sherwood Bedding will be operated as a standalone, independent business unit within the Company and will continue to be led by its current management team. The transaction is expected to close within the first quarter of 2020.
Sherwood Bedding is a low-cost, high-value producer of private label and OEM products for third-party retailers and in the contract bedding market. Sherwood Bedding has estimated annual wholesale revenues of over $150 million and expects to fund its own future growth and be accretive to the Company’s earnings in 2020. The Company believes that over time cost synergies can be realized to benefit all brands and customers. No personnel reductions are expected.
Tempur Sealy International, Inc. Chairman and CEO Scott Thompson commented, “Over the past nine years Sherwood Bedding has grown to become one of the most respected bedding producers in the industry. Sherwood Bedding’s flexible and efficient operating model, focused primarily on value and high velocity price points, complements Tempur Sealy’s iconic brands, powerful distribution model, and supply chain. Together, we believe that we can build upon existing relationships to deliver more compelling products, branded and non-branded, than either business could on its own.”
Sherwood Bedding Co-President Neil Ellman commented, “With Tempur Sealy being the dominant player in the U.S. bedding industry, we believe we have the perfect partner to acquire market share in the private label sector. The complementary knowledge and market-fit of the companies as well as the ability to improve upon our low-cost structure delivers a unique opportunity and provides us with a sustainable competitive advantage.”
https://seekingalpha.com/pr/17759025-tempur-sealy-to-acquire-majority-stake-in-sherwood-bedding
January 21, 2020
Covestro Pauses MDI Project
Covestro to pause MDI investment project in Baytown, Texas
To our valued customer:Due to challenging global market conditions, Covestro has decided to delay further work on the MDI plant expansion in Baytown, Texas. The investment project, known as MDI-500, will be paused for a period of 18 to 24 months. We recognize the significance of this announcement, which is why we wanted you to hear it directly from us.
Please be assured that this is a pause – not a cancellation. Covestro remains firmly committed to its customers and to the long-term growth potential of the MDI market. By leveraging our global supply network, we will continue to provide our customers with reliable MDI supply.Our long-term growth strategy has not changed. We remain committed to Baytown as the ideal location to further expand our MDI production capacities in North America. For that reason, we will be prepared to resume the project at the appropriate time.
In the meantime, please know that we truly value your business and are committed to meeting your needs through reliable supply, high-quality product and best-in-class support.
We welcome the opportunity to discuss this topic further with you and address any questions or concerns. You can expect to hear from us shortly.
Sincerely,Christine Bryant
SVP, Polyurethanes – North America
Covestro LLC
January 21, 2020
Covestro Pauses MDI Project
Covestro to pause MDI investment project in Baytown, Texas
To our valued customer:Due to challenging global market conditions, Covestro has decided to delay further work on the MDI plant expansion in Baytown, Texas. The investment project, known as MDI-500, will be paused for a period of 18 to 24 months. We recognize the significance of this announcement, which is why we wanted you to hear it directly from us.
Please be assured that this is a pause – not a cancellation. Covestro remains firmly committed to its customers and to the long-term growth potential of the MDI market. By leveraging our global supply network, we will continue to provide our customers with reliable MDI supply.Our long-term growth strategy has not changed. We remain committed to Baytown as the ideal location to further expand our MDI production capacities in North America. For that reason, we will be prepared to resume the project at the appropriate time.
In the meantime, please know that we truly value your business and are committed to meeting your needs through reliable supply, high-quality product and best-in-class support.
We welcome the opportunity to discuss this topic further with you and address any questions or concerns. You can expect to hear from us shortly.
Sincerely,Christine Bryant
SVP, Polyurethanes – North America
Covestro LLC
January 15, 2020
Palmer Holland Converts to ESOP
Palmer Holland Converts to Employee Stock Ownership Plan
Commitment to Employees, Principals and Independence Leads Company to Evolve
Cleveland, Ohio, Jan. 10, 2020 — Palmer Holland, a North American specialty chemical and ingredient distributor of raw materials, converted to a privately held Employee Stock Ownership Plan (ESOP) with an ownership team made entirely of employees.
While Palmer Holland was a private company prior to the transition, this move solidified the organization’s goal to remain an independent specialty chemical and ingredient distributor for the long term. While others in the sector have sold to multinational, publicly-traded companies or reorganized, Palmer Holland has doubled down on the model, its people and its independence.
An ESOP, similar to a profit-sharing plan, lets a company set up a trust fund and contribute new shares of its stock as a retirement benefit to employees. This change will make Palmer Holland more independent and even more dependable in order to further live up to its commitment to customer excellence and unique commercial offerings to global chemical manufacturers.
“The conversion to an ESOP allows Palmer Holland to benefit employees and principals, live up to our core values in excellence, and evolve and grow,” said Bryn Irvine, CEO. “It has always been our goal to remain independent even in this climate where others are selling. Our ESOP allows us to retain our culture and unparalleled way of doing business.”
The move to an ESOP will not change day-to-day function and visibility in relationships with current customers or principals. This is not a new management or organizational structure; the only change is that its partners now get to connect with owners at every interaction.
The ESOP structure also provides another tool in recruiting and retaining top talent and adds a significant component to the employee benefit plan.
For more information about Palmer Holland, please visit palmerholland.com.
About Palmer Holland
Established in 1925 as Palmer Supplies Company, today Palmer Holland is a North American specialty chemical and ingredient distributor of raw materials headquartered in Cleveland, Ohio with over 40 account managers and ingredient consultants stationed throughout the United States and Canada. Palmer Holland is a private, employee-owned company which allows us greater flexibility in the marketplace and a dedicated platform for long-term success. This flexibility enables Palmer Holland to provide our customers and principals with the most effective and efficient solutions. These partners are rooted in the areas of Agriculture, CASE (coatings, adhesives, sealants, elastomers), Health and Nutrition, Lubricants and Plastics. For more information about Palmer Holland, visit our website at www.palmerholland.com.
https://news.thomasnet.com/companystory/palmer-holland-converts-to-employee-stock-ownership-plan-40032862
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