After it was revealed that US bedding conglomerate Leggett & Platt Inc had purchased Kayfoam Woolfson, the Ireland-based foam- and bedmaker behind the Kaymed brand, earlier this summer, the components giant has revealed more details of the acquisition in its Q2 results.
Q2 sales set a quarterly record of $1.27b (up +50% YoY), while adjusted EBIT was $144m (up $94m YoY). Volume was up +31%, reflecting strong recovery in most of the businesses and increased demand YoY, when the business was significantly impacted by the pandemic.
Leggett & Platt states that raw material-related selling price increases of +16% and currency benefit of +3% added to sales growth.
Chairman and CEO Karl Glassman comments: "Our employees continued to drive strong results in the second quarter despite a challenging macroenvironment. Due to their tremendous efforts, we are pleased to deliver all-time quarterly record sales along with record second quarter adjusted EBIT and EBITDA. While we continue to navigate inflationary pressures along with supply chain disruptions, consumer demand remains strong and we are increasing our full-year guidance.
"We are also pleased to announce that on June 4th, we acquired a leading provider of specialty foam and finished mattresses primarily serving customers in the UK and Ireland. The company, Kayfoam, is located near Dublin and has two manufacturing facilities with combined annual sales of approximately $80m. Kayfoam expands the capabilities of our European bedding business and establishes a platform in foam technology and finished mattress production. Similar to our US bedding business, this acquisition allows us to support our European bedding customers anywhere in the value chain from innerspring and foam components to finished products including private-label mattresses, toppers, pillows, and other bedding accessories.
"Finally, we remain focused on cash generation while reducing debt and deploying capital in a balanced and disciplined manner that positions us to capture near- and long-term growth opportunities, both organically and through strategic acquisitions."
For 2021, the business now expects sales to be $4.9–$5.1b (+14%-19% YoY), with volume expected to grow by mid-to-high-single digits.
Leggett & Platt was voted Best Fabric/Component Supplier in this year's Furniture News Readers' Choice Awards.