LEGGETT & PLATT TO ISSUE STOCK TO ACQUIRE HANES HOLDING CO.
CARTHAGE, Mo., July 19 /PRNewswire/ -- Leggett & Platt Inc. (NYSE: LEG) announced it plans to issue about $65 million of its common stock to acquire Hanes Holding Co. under a merger agreement signed by both companies. A registration statement covering the stock to be issued to Hanes shareholders was filed with the Securities and Exchange Commission today. As previously announced, the acquisition is subject to the completion of satisfactory due diligence by Leggett & Platt, approval by Hanes shareholders and reviews by governmental agencies. Leggett & Platt will account for the acquisition as a pooling of interests. The acquisition is projected to enhance Leggett's 1994 earnings per share by about 10 cents per share. However, in view of one time charges and expenses associated with the transaction and other factors, the acquisition is expected to have a neutral to slightly positive effect on Leggett's 1993 earnings. Current plans continue to call for a late August closing, near the same time that Hanes hopes to close its previously announced acquisition of VWR Textiles & Supplies. The Hanes and VWR transactions will increase Leggett's long-term debt ($87 million at March 31, 1993) by about $70 million. This will bring Leggett's debt to total capitalization ratio from the present historically low level of about 15 percent to a level approaching 25 percent. Management has a continuing guideline of normally maintaining long-term debt in a range of 30 percent to 40 percent of total capitalization. Headquartered in Winston-Salem, N.C., Hanes is a privately owned company with annual sales of about $150 million. It is a leading converter and distributor of woven and nonwoven industrial fabrics, primarily in the home furnishings industry. Hanes is also one of the largest commission dye/finishers of non-fashion fabrics for the home furnishings and apparel industries. VWR Textiles & Supplies is headquartered in Hickory, N.C. and has annual sales of about $70 million. VWR converts and distributes woven and nonwoven industrial fabrics and manufactures and distributes other supplies to manufacturers of furniture and bedding. Leggett & Platt is a Fortune 500 and New York Stock Exchange company that specializes in manufacturing and marketing components for home, office and institutional furniture and bedding. Select lines of sleep- related furniture and carpet cushioning materials are also produced and sold in the furnishings industry. In addition, Leggett makes a variety of diversified, non-furnishings products that it sells in many different markets. For the trailing 12 months through March 31, 1993, Leggett & Platt's sales were a record $1.2 billion. Net earnings for the like period were a record $67.3 million, or $1.74 per share. There are currently about 38.4 million shares of Leggett common stock outstanding. -0- 7/19/93 /CONTACT: J. Richard Calhoon of Leggett & Platt, 417-358-8131/ (LEG)
CO: Leggett & Platt Inc.; Hanes Holding Co.; VWR Textiles & Supplies ST: Missouri; North Carolina IN: HOU SU: TNM
BB -- DV008 -- 3153 07/19/93 14:37 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 19, 1993|
|Previous Article:||OWENS & MINOR, INC., ANNOUNCES MAJOR MEDICAL/SURGICAL SUPPLY AGREEMENT|
|Next Article:||TODHUNTER INTERNATIONAL RESPONDS TO U.S. EPA ALLEGATIONS|