Milliken acquires Western Nonwovens' fire-retardant business

Boosts Milliken's position as a supplier of FR products to mattress industry

David Perry -- Furniture Today, August 27, 2008

SPARTANBURG, S.C. — Textile giant Milliken announced today that it has acquired Western Nonwoven Inc.'s fire-retardant barrier assets and its geotextile business out of Chapter 11 protection.

The move will boost Milliken's already strong position as a supplier of FR products to the mattress industry.

Court documents filed in the bankruptcy case indicate that a Milliken subsidiary agreed to pay $11.2 million for the acquisitions. That is $7.2 million more than Simmons agreed to pay for certain Western assets when Western filed for bankruptcy protection in July. The higher price resulted from a competitive auction held last week that was part of the bankruptcy process. Simmons was bidding on the assets of two Western Nonwovens plants, while Milliken successfully bid on the assets of six Western plants, including the two on which Simmons had bid.

Milliken said that with the acquisition, it will "enhance its product leadership in the fire-retardant barrier category." Milliken will continue to produce and sell its Paladin FR barrier products, maintaining "the same high standards and commitment to service," the company said. It added that it is willing and able to support Western Nonwovens' customers by manufacturing Western's Esyntial Safe FR products under Milliken's Paladin brand.

In addition to acquiring the FR barrier business, Milliken also gained access to the Sandmat product line of geotextile nonwovens, offered to the golf course development and remediation industries.

Acquisition of those two businesses further strengthens Milliken's specialty nonwoven capabilities, the company said.

"This purchase is consistent with Milliken's intent to grow in the nonwovens arena and will serve to expand market and customer access," said Bob Champion, general manager of Milliken's specialty nonwoven business.

That business is based at Milliken's headquarters in Spartanburg. Milliken is one of the world's largest privately held textile, chemical and carpet manufacturers. It is one of the largest suppliers of FR products to the mattress and upholstery markets. Milliken's nonwoven barriers provide inherently flame retardant solutions that allow properly designed mattresses and foundations to comply with the federal mattress FR standard, the company said.

Milliken's FR mattress products include thermal bonded highloft nonwovens, needlepunch nonwovens and multi-layer composites that combine its barriers with other materials.