PILLOWTEX CORPORATION ANNOUNCES AGREEMENT TO ACQUIRE TENNESSEE WOOLEN MILLS, INC. AND ACQUISITION OF MANETTA MILLS, INC.
DALLAS, Sept. 1 /PRNewswire/ -- Pillowtex Corporation (NYSE: PTX) announced today that the company has entered into an agreement to acquire the business of Tennessee Woolen Mills, Inc., a blanket manufacturer located in Lebanon, Tenn., for a cash purchase price of approximately $12,300,000. The company also announced that, through a newly formed subsidiary, it had consummated the acquisition of substantially all of the assets of Manetta Mills, Inc., a 97-year old manufacturer of fine quality cotton blankets, located in Monroe, N.C. The purchase price for Manetta Mills was approximately $7,100,000, paid in cash. "The purchase of these two businesses will make Pillowtex one of the largest blanket manufacturers in the U.S.," said Charles M. Hansen Jr., chairman of the board and chief executive officer. Total annual sales for Tennessee Woolen Mills and Manetta Mills are approximately $25,000,000 and $15,000,000, respectively. Hansen emphasized that the acquisition of Tennessee Woolen Mills is subject to several conditions to closing, but is expected to be consummated in the second week of September 1993. Pillowtex is the largest manufacturer of bed pillows and down comforters in the country, and designs, manufactures and markets a full line of other bedroom textile furnishings. "These acquisitions will further improve our ability to act as a single source supplier, and allow us to capitalize on the company's marketing and merchandising expertise," commented Hansen. The company operates a nationwide network of manufacturing and distribution facilities, servicing retailers across the United States, and exports throughout North America and overseas. -0- 9/1/93 /CONTACT: Jeff Cordes, vice president-administration and planning, Pillowtex, 214-333-3225 ext. 344/ (PTX)
CO: Pillowtex Corporation; Tennessee Woolen Mills, Inc. ST: Texas; Tennessee; North Carolina IN: TEX SU: TNM
LG -- NY008 -- 7774 09/01/93 08:17 EDT
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|Date:||Sep 1, 1993|
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