FOAMEX AND LEGGETT & PLATT
SIGN REVISED
LETTER OF INTENT FOR SALE OF
GFI CARPET CUSHION BUSINESS
__________________________________________________________
LINWOOD, PENNSYLVANIA, September
10, 2002 – Foamex International
Inc. (NASDAQ: FMXI) announced today it has signed a letter of intent
to sell its GFI carpet cushion business to Leggett & Platt for a cash
payment. This letter of intent replaces the company’s earlier letter of
intent with Leggett & Platt signed in May 2002, which anticipated an
exchange of Foamex’s carpet cushion business for Leggett & Platt’s
polyurethane foam business and a cash payment.
Under the terms
of the revised letter of intent, Foamex would sell its GFI carpet cushion
business to Leggett & Platt for a payment of approximately $70 million.
After the potential post-closing adjustments, transaction fees, and other
disposal costs, Foamex expects the net proceeds from the transaction to be
in the range of $45-50 million, subject to final negotiation. In connection
with the proposed transaction, the parties will enter into certain
agreements relating to the sale of scrap foam and the interim sharing of
facilities.
The proposed
transaction is subject to the approval of Foamex’s lenders, satisfactory
completion of confirmatory due diligence, definitive documentation and
customary closing conditions. Foamex is targeting a close of the deal by
the middle of the fourth quarter.
About Foamex International Inc.
Foamex, headquartered in Linwood, PA, is the world's leading
producer of comfort cushioning for bedding, furniture, carpet cushion and
automotive markets. The Company also manufactures high-performance polymers
for diverse applications in the industrial, aerospace, defense, electronics
and computer industries as well as filtration and acoustical applications
for the home. For more information visit the Foamex web site at
http://www.foamex.com.
Forward-Looking Statements
This press release contains, and
oral statements made from time to time by representatives of the Company may
contain, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Such forward-looking statements include,
without limitation, those relating to completion of the operational
restructuring as currently contemplated and the currently anticipated
benefits of the restructuring, including those relating to the work force
reductions, cost savings and restructuring charges from Project
Transformation, the expected benefits of expanding the use of VPF
technology, the Company's ability to introduce new products, enhance sales
growth and margins and the outlook for the Company's financial performance.
These forward-looking statements are affected by risks, uncertainties and
assumptions that the Company makes about, among other things, its ability to
implement customer selling price increases in response to higher raw
material costs, raw material price increases, general economic conditions,
conditions in the capital markets, the interest rate environment, the level
of automotive production, carpet production, furniture and bedding
production and housing starts, the completion of various
restructuring/consolidation plans, the achievement of management’s business
plans, its capital and debt structure (including various financial
covenants), litigation and changes in environmental legislation and
environmental conditions and other factors mentioned in the documents filed
by the Company with the Securities and Exchange Commission. While the
Company believes that its assumptions regarding the foregoing matters are
reasonable, any of the assumptions could be inaccurate, and therefore there
can be no assurance that the Company's forward-looking statements will prove
to be accurate. Additional information that could cause actual results to
vary materially from the results anticipated may be found in the Company's
most recent Form 10-K and other reports filed with the Securities and
Exchange Commission. Readers should be aware that any forward-looking
statement made in this press release or elsewhere by the Company speaks only
as of the date on which it is made, and the Company disclaims any obligation
or intent to update any of the factors listed above or forward-looking
statements.
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