Hanes Buys RAE Export Blackout, Linings Business

August 9, 2002

Winston-Salem, N.C. (USA) -- Hanes Companies Inc., a subsidiary of Leggett & Platt, has acquired RAE Trading's export drapery lining and blackout fabric business.

At the same time, Joe Romano, President of RAE Trading announced separately that he was exiting the export business and would concentrate on the domestic wholesale and retail business in the USA.

RAE has been an exhibitor at Decosit in Brussels, Belgium in past years but it is not going to participate this September, Romano confirmed.

Mark Linville, Vice President and CFO of Hanes Companies negotiated the deal with Romano. Purchase price was not disclosed but the deal included RAE's export linings inventory and international customer list. With sales to 52 countries RAE Trading has served the export linings business for 30 years and will continue to serve the domestic linings market. Romano indicated to F&FI that the drapery linings export business had become a "low profit margin business for RAE."

In a separate agreement, industry veteran Bill Negin, with Rae export for eight years, has agreed to work with Hanes in an export sales management role as a consultant and will continue to be the primary contact for former RAE customers.

"We recognize international sales of blackout for both commercial and residential applications is a growth business for us," said Rod Poole, vice president of Hanes Industries.

Hanes produces foam backed and blackout fabrics at its Mount Hope finishing plant in Butner, North Carolina. It also serves the domestic and international industries with drapery lining fabrics out of its Hanes Industries division in Conover, NC. Hanes also owns several drapery lining distributors including Edmund Bell in the UK and others in Canada and Mexico. Hanes is a subsidiary of Leggett & Platt, a publicly held multi billion dollar company which does not break out Hanes sales in its annual report. Hanes Companies operates out of 28 facilities, including three dyeing and finishing plants in North and South Carolina, as well as converting and distributing facilities for woven and nonwoven textiles in North America, Latin America, and Europe.

Hanes will exhibit its full range of drapery and blackout linings at Heimtextil-Frankfurt in January, 2003. This will be Hanes' third consecutive Heimtextil showing.


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