Courtaulds Dumps Furnishings, Towels; Walker Greenbank Buys Standfast, Weavestyle
September 20, 2000
London - The large British-based clothing and fabrics group Courtaulds Textiles plc has sold its furnishing fabrics and towels businesses.
The Standfast and Weave-style jacquard woven and commission-printed furnishings operations have been sold to a wholly owned subsidiary of Walker Greenbank plc for $13.6 million.
The Christy towels business, based in Hyde, Cheshire, is to be sold to a management buy-out team for $22.7 million. The company is the U.K.'s leading towel brand and manufacturer and has been producing luxury towels in plain- dyed, jacquard and embellished ranges since 1850 - exactly 150 years ago.
Christy exports through its subsidiaries in Germany and the U.S.A. where it is a major supplier to Bloomingdale's. The company is also the official towel supplier to the Wimbledon tennis championships.
"There has been significant capital investment over the last five years and this new beginning gives us the opportunity to build upon a strong, profitable base," said Joel Rosenblatt, Christy's managing director, who is leading the six-strong management buy-out team.
"Our next target is for further automation, information technology and new equipment to ensure we maintain our profitability, which we envisage coming from both the U.K. and overseas. There are significant opportunities for us in Europe and the U.S.A."
Standfast is a commission printer of furnishing fabrics located in Lancaster, in the northwest of England, while Weavestyle produces jacquard woven furnishing fabrics in Silsden, West Yorkshire.
Together, Standfast and Weavestyle had just turned into profit when they were sold. With combined net assets at 31 December of $13.2 million and a combined operating profit of about $300,000 in 1999, the two companies were part of Courtaulds Textiles' Furnishings Division, which recorded sales of $78.7 million last year. The group said all its four furnishings businesses had strong market positions but lacked scale relative to the group's other divisions.
Based in Hemel Hempstead, Hertfordshire, Walker Greenbank is a leading wallcoverings and furnishings supplier in the U.K., with exclusive brand ranges for Zoffany, Warner & Cole and Harlequin.
Walker Greenbank chief executive Aidan Connolly said of the two acquired businesses: "They are quality operations and add good capability to our existing portfolio of fabrics and wallpaper for the consumer décor market.
"We expect Standfast and Weavestyle to be very profitable over the next few years," he added. And at around 25 percent of combined turnover, "they are a much bigger part of our business than they were to Courtaulds Textiles, so they are much more important to us."
Exporting appears to be part of the reason for the acquisition. Neither company exports at the moment, while Walker Greenbank already has significant sales to Europe, the US and the Far East.
"We expect the two companies to contribute to our export efforts," said Connolly. "That is part of the belief that we can grow their operations, and they will be very valuable additions to our future business. Standfast and Weavestyle add a high quality fabric capability to our existing high quality wallcoverings."
The acquisition announcement was made prior to the news that Courtaulds Textiles had accepted a revised takeover bid estimated at $228 million from Sara Lee Corporation, the giant U.S. consumer products group.
With the disposal of the furnishing fabrics and towels businesses, Courtaulds Textiles' strategy is now to concentrate resources on developing internationally its leading market positions in apparel fabrics, lingerie, hosiery and clothing, explained chief executive Colin Dyer.
The sell-offs were foreshadowed in March 1999, when Courtaulds Textiles said it was considering plans to sell all its home furnishings businesses for about $45 million, in order to focus on fabrics and branded clothing.
As well as disposing of non-core businesses over the past couple of years, the group has been shedding jobs, closing U.K. factories and transferring more of its production overseas.
The Standfast and Weave-style jacquard woven and commission-printed furnishings operations have been sold to a wholly owned subsidiary of Walker Greenbank plc for $13.6 million.
The Christy towels business, based in Hyde, Cheshire, is to be sold to a management buy-out team for $22.7 million. The company is the U.K.'s leading towel brand and manufacturer and has been producing luxury towels in plain- dyed, jacquard and embellished ranges since 1850 - exactly 150 years ago.
Christy exports through its subsidiaries in Germany and the U.S.A. where it is a major supplier to Bloomingdale's. The company is also the official towel supplier to the Wimbledon tennis championships.
"There has been significant capital investment over the last five years and this new beginning gives us the opportunity to build upon a strong, profitable base," said Joel Rosenblatt, Christy's managing director, who is leading the six-strong management buy-out team.
"Our next target is for further automation, information technology and new equipment to ensure we maintain our profitability, which we envisage coming from both the U.K. and overseas. There are significant opportunities for us in Europe and the U.S.A."
Standfast is a commission printer of furnishing fabrics located in Lancaster, in the northwest of England, while Weavestyle produces jacquard woven furnishing fabrics in Silsden, West Yorkshire.
Together, Standfast and Weavestyle had just turned into profit when they were sold. With combined net assets at 31 December of $13.2 million and a combined operating profit of about $300,000 in 1999, the two companies were part of Courtaulds Textiles' Furnishings Division, which recorded sales of $78.7 million last year. The group said all its four furnishings businesses had strong market positions but lacked scale relative to the group's other divisions.
Based in Hemel Hempstead, Hertfordshire, Walker Greenbank is a leading wallcoverings and furnishings supplier in the U.K., with exclusive brand ranges for Zoffany, Warner & Cole and Harlequin.
Walker Greenbank chief executive Aidan Connolly said of the two acquired businesses: "They are quality operations and add good capability to our existing portfolio of fabrics and wallpaper for the consumer décor market.
"We expect Standfast and Weavestyle to be very profitable over the next few years," he added. And at around 25 percent of combined turnover, "they are a much bigger part of our business than they were to Courtaulds Textiles, so they are much more important to us."
Exporting appears to be part of the reason for the acquisition. Neither company exports at the moment, while Walker Greenbank already has significant sales to Europe, the US and the Far East.
"We expect the two companies to contribute to our export efforts," said Connolly. "That is part of the belief that we can grow their operations, and they will be very valuable additions to our future business. Standfast and Weavestyle add a high quality fabric capability to our existing high quality wallcoverings."
The acquisition announcement was made prior to the news that Courtaulds Textiles had accepted a revised takeover bid estimated at $228 million from Sara Lee Corporation, the giant U.S. consumer products group.
With the disposal of the furnishing fabrics and towels businesses, Courtaulds Textiles' strategy is now to concentrate resources on developing internationally its leading market positions in apparel fabrics, lingerie, hosiery and clothing, explained chief executive Colin Dyer.
The sell-offs were foreshadowed in March 1999, when Courtaulds Textiles said it was considering plans to sell all its home furnishings businesses for about $45 million, in order to focus on fabrics and branded clothing.
As well as disposing of non-core businesses over the past couple of years, the group has been shedding jobs, closing U.K. factories and transferring more of its production overseas.
