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Culp sees expansion into hospitality market through Read Window
Posted on Friday, 09 March 2018 11:45
Mattress fabric manufacturer Culp has sewn up a deal for Knoxville-based Read Window Products in order to support its “growing sales of upholstery fabrics designed for the hospitality market”, according to chief executive Frank Saxon.
Completion is slated for the end of March, subject to customary closing conditions.
Financial details were not disclosed but the buyer plans to fund the purchase through cash and investments on hand.
Culp sells fabrics that can be used to cover mattresses, as well as cut and sewn kits that are used in upholstery furniture production.
For the six months to 29th October 2017, the US firm, which also operates in Canada, China and Haiti, posted net income of USD 8.96 million on sales totalling USD 160.23 million.
President of the upholstery fabrics division, Boyd Chumbley, stated that the addition of window treatments to its product line “is a logical step in Culp’s evolution as a complete source of fabrics for the hospitality market”.
Saxon added that the acquisition “will complement our existing upholstery fabrics business and enhance our ability to expand our sales and reach additional customers” in the industry.
Read Window describes itself as a turn-key provider of fabrication, distribution, and installation services of window treatments and soft goods for hotels.
The target’s product offering ranges from custom drapery and shower curtains to decorative top sheets and upholstered headboards.
These items, amongst others, are used in a range of high-end branded resorts, included Hilton Worldwide, Wyndham, and Marriott Vacation Worldwide.
Since it was founded in 1981, the company has sourced and installed over 2.40 million window treatments and, in 2017, it generated annual revenues of around USD 11.00 million.
Chief executive Dale Read stated that, together with Culp, the businesses “will be uniquely positioned to offer the full complement of high quality, decorative fabrics used inside a hotel room”.
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