Sealy divests European manufacturing operations
Italian company SAPSA Group becomes European licensee
Furniture Today Staff -- Furniture Today, November 22, 2010
They will now be operated by a private Italian company, SAPSA Group, which will remain a Sealy licensee in Europe, excluding the United Kingdom, Ireland, Channel Islands and Isle of Man.
Financial details on the transaction were not disclosed.
Through the first nine months of fiscal 2010, Sealy's Europe segment generated net sales to external customers of $76.8 million and reported a loss of $25.2 million before interest expense, income taxes, depreciation and amortization, which includes an impairment charge of $23 million.
"Our decision to divest SAPSA enables us to better focus our resources on the areas of our business that are aligned with our greatest growth opportunities," said Larry Rogers, Sealy's president. "This divestiture will also position us to drive improved EBITDA performance and reduce our net debt position. We expect this improved focus will drive increased shareholder value in both the near and long-term as SAPSA will continue as a licensee of the Sealy brand."
He also said the new owner's management "has significant European operating experience (and) will provide it with renewed energy," Rogers added.
Andrea Chalp, the newly appointed president of the SAPSA Group, added, "We are committed to developing a long and productive partnership with Sealy as we continue to build the Sealy brand in Europe."