LINWOOD, Pa. (Sept. 13)—Foamex International Inc. and Leggett & Platt have revised an earlier plan to do a business swap, in favor of a cash deal, under which Foamex will sell its GFI carpet cushion business to L&P for about $70 million. In May, Foamex signed a letter of intent to exchange the carpet cushion business for L&P's polyurethane foam business and a cash payment. Under a revised letter of intent, Foamex expects net proceeds from the new transaction to be $45 million to $50 million. The two companies also will make arrangements about sale of scrap foam and the interim sharing of facilities. Foamex hopes to close the deal by the middle of the fourth quarter, providing it gains approval from its lenders and due diligence is completed satisfactorily.
Leggett & Platt to buy Foamex's carpet cushion business
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