Foam products producer sells division

Foamex International Inc., a manufacturer of flexible polyurethane and advanced polymer foam products in North America, has sold its rubber and felt carpet cushion businesses to Leggett & Platt, Inc. The sale includes the Cape Girardeau, MO rubber manufacturing facility and certain assets of the Newton, NC felt manufacturing plant, for approximately $38.5 million. Foamex, based in Linwood, PA, intends to use the proceeds of the transaction to pay down debt. Foamex will continue to offer prime and rebond polyurethane carpet cushion and flooring underlay products through its Carpet Cushion division.
Commenting on the sale, Foamex president and CEO said the prime and rebond polyurethane segments of the carpet cushion market constitute 85% of the overall national market.