Hickory Springs Manufacturing Company Enters Into Agreement With Elite Comfort Solutions
Hickory Springs Manufacturing Company (HSM) recently announced that it has entered into a strategic agreement with Elite Comfort Solutions, a newly created portfolio company of Arsenal Capital Partners (Arsenal), regarding the foam production assets of HSM’s Foam Solutions Division (HSM Foam). HSM Foam is one of the largest producers of flexible polyurethane foam in North America, providing hundreds of foam formulations for furniture, bedding, medical and packaging market applications. Its range of products includes Code*Red-II combustion inhibitive foam, EnduroFoam premium performance foam and Preserve, the world's first bio-based polyurethane foam. HSM Foam’s operations are located in North Carolina (Conover), Arkansas (Fort Smith), Mississippi (Verona), California (Commerce) and Georgia (Americus).
David F. Underdown, Chairman of HSM stated, “HSM will remain a major fabricator of foam products for its existing as well as new customers in the furniture, bedding, medical and packaging markets. This transaction will enable HSM to strengthen its leading market positions in its transportation seating, foam fabrication, specialty spring, wire and metal products businesses”.
Mark S. Jones, President and CEO of HSM added, “This is an exciting time for HSM as we build on our 70 year history of providing innovative products and solutions to our diverse customer base.”
Arsenal, a New York-based private equity firm that invests in middle-market companies announced the creation of Elite Comfort Solutions which is a combination of Elite Foam, Inc., a developer and manufacturer of specialty foam for the bedding and home furnishings industry based in Newnan, Georgia; Pacific Urethanes LLC, a developer and producer of specialty polyurethane foam materials based in Ontario, California; and HSM Foam. Elite Comfort Solutions will continue to support HSM’s foam fabrication operations.
Bobby W. Bush, Senior Vice President of HSM, will continue to support HSM Foam under Elite Comfort Solutions. “By teaming with Elite Foam and Pacific Urethanes, we've immediately broadened our scope in terms of market reach, technical ability and foaming knowhow, becoming a stronger, larger, forward-looking foam producer."
“We partnered with the management teams of Elite Foam, Pacific Urethanes and HSM Foam to bring together these three complementary players in the specialty foam industry,” said John Televantos, a Partner at Arsenal and Co-Head of the firm’s Specialty Industrials Group.
Timothy Zappala, a Partner at Arsenal and Co-Head of the firm’s Specialty Industrials Group, said “Recognizing the importance of regional presence, yet conformity of quality and real-time service, the combination of these businesses has immediately created a leading foam company with the scale and range of product technologies desired to support our growing customer needs anywhere in North America.”
The HSM Foam transaction is subject to customary conditions to closing and is expected to close early in the second quarter of 2016.