Foamex, Leggett & Platt consider swap

LINWOOD, Pa. (June 19)—Foamex International Inc. and Leggett & Platt Inc. have signed a letter of intent to exchange their foam and carpet operations. The deal is in the very early stages, a Leggett & Platt spokesman cautioned, and if a deal comes off, it won't be complete for a few months. At this stage, Foamex is planning to swap its carpet cushion business for Leggett & Platt's polyurethane foam operation and an undisclosed cash payment, according to a Foamex spokeswoman. The companies also are reviewing entering into other agreements, including the sale of scrap and prime foam and sharing of facilities, on an interim basis, she indicated. Carthage, Mo.-based Leggett & Platt's polyurethane foam business manufactures and distributes components for bedding and furniture, as well as consumer products, while Foamex's carpet cushion unit makes and distributes prime, rebond, felt and rubber underlay goods. The proposed exchange is subject to the satisfactory completion of due diligence by each company, along with the normal documentation and closing conditions, which includes regulatory approval, Foamex said in a prepared statement