Kluft to acquire Park Place plant in Pennsylvania
Will house high-end bedding line's first East Coast production
David Perry -- Furniture Today, May 10, 2011
DENVER, Pa. — High-end bedding producer E. S. Kluft & Co. has signed a letter of intent to acquire Park Place Corp.'s 86,000-square-foot manufacturing and distribution center here and retain approximately 40 employees.
California-based Kluft will use the facility to establish an East Coast manufacturing base and boost its business in the eastern half of the country.
The deal is expected to close in late May, after which the facility will be retrofitted for Kluft's production processes and training of employees will begin, officials said. Terms of the deal were not disclosed.
The plant, in central Pennsylvania near Lancaster, was built in the 1970s. Park Place purchased the former United Sleep Products factory in 2007 and has used it as a satellite-manufacturing center from its main base in Greenville, S.C.
Kluft officials said the plant will provide the delivery lead time needed to properly service current and prospective customers in the East, who until now were relying on deliveries from the company's Southern California facility.
"Kluft and Aireloom brands are so unique in the industry that there has been growing interest by high-quality retailers who have wanted to carry the brands but were hesitant to make a commitment because we were only producing in California," said Earl Kluft, CEO of E.S. Kluft & Co. "This new facility changes all that as we can very efficiently and effectively service these accounts. It will open many new retail doors for us."
Kluft said his company needs an eastern facility "to reach new prospects more effectively and to better service the growing needs of our dealers there."
For Park Place, the sale realigns the company's manufacturing and distribution with its area of responsibility under a license agreement signed with Comfort Solutions last year.
"We are very pleased that our Pennsylvania associates will continue in the mattress making profession," said Park Place President Jimmy Orders. "Earl Kluft is a quality and design leader with a long-term commitment to the industry."
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