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Leggett & Platt sells storage products business

Posted online
Last edited Sept. 13, 2:00 p.m.

Carthage-based manufacturer Leggett & Platt (NYSE: LEG) announced Sept. 13 it sold its Storage Products business to Delaware-based SPG International LLC, according to a Leggett news release.

Leggett is keeping the specific financial details undisclosed, but Director of Investor Relations Susan McCoy said the sale was made in the "ballpark of $15 million."

The company's Storage Products business produced and purchased various types of racks and shelves used in the food preparation areas of food service companies, she said.

The sale is part of Leggett & Platt's slimming strategy first introduced to investors in November 2007. Since the implementation of the realignment program, the company has sold seven business units for a combined $433 million, the release said.

"Leggett is a smaller company today, with over $3 billion of revenue expected in 2010, compared to $5.5 billion at our peak," CEO and President David Haffner said in the release. "The benefit of our focused approach is evidenced by improving margins despite the significant, economy-induced sales decline.

"We are well poised to benefit when the economy recovers and have ample production capacity that should generate healthy incremental margins as sales rebound."

There are currently no additional business units up for sale, the release said.

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