GREENVILLE, S.C.--(BUSINESS WIRE)--Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today that its contract with Louisville Bedding Company is expected to be transferred to Hollander Home Fashions as part of an expected sale of Louisville Bedding’s utility bedding retail business to Hollander that was announced today by Louisville Bedding and Hollander. The sale of Louisville Bedding’s utility bedding retail business is contingent on approval by its stockholders.
Louisville Bedding has been the exclusive distributor of Span-America’s consumer foam products and currently operates under a contract that expires in December 2015. Sales under the contract to Louisville Bedding were approximately $26.2 million in fiscal 2012 and made up approximately 34% of Span-America’s total sales. Span-America anticipates that Hollander will request the assignment of Louisville Bedding’s exclusive distribution agreement for Span-America’s consumer foam products to Hollander, and Span-America expects to consent to the assignment.
“We have had a long and outstanding relationship with Louisville Bedding Company, and we look forward to building that same partnership with Hollander,” stated Jim Ferguson, President and CEO of Span-America Medical Systems, Inc. “Hollander is known for their excellence in product innovation, brand vision, supply chain execution and quality. We look forward to working with them to add our foam bedding products to their widely recognized product lines. We believe the transaction will have excellent potential for Span-America and Hollander.”
Hollander has produced bedding products for over 60 years with a brand line-up that currently includes Ralph Lauren, Laura Ashley, Waverly and Court of Versailles. With headquarters in Boca Raton, Florida, Hollander is one of the largest suppliers of bed pillows in North America. They also manufacture and distribute a broad line of comforters, non-foam mattress pads and various other basic bedding products. Hollander operates six manufacturing plants and sells their products under several national brand names to most major retailers throughout North America.
About Span-America Medical Systems, Inc.
Span-America manufactures and markets a comprehensive selection of pressure management products for the medical market, including Geo-Matt®, PressureGuard®, Geo-Mattress®, Custom Care®, Span+Aids®, Isch-Dish®, Risk Manager® and Selan® products. We also supply custom foam and packaging products to the consumer and industrial markets. Through our wholly-owned subsidiary Span Medical Products Canada Inc., we manufacture and market M.C. Healthcare Products’ brands of Maxxum, Advantage and Rexx bed frames as well as related case goods, tables and seating products for the long-term care market. Span-America’s stock is traded on The NASDAQ Global Market under the symbol “SPAN.” For more information, visit www.spanamerica.com and www.mchealthcare.com.
Forward-Looking Statements
We have made forward-looking statements in this release regarding our expectations related to the proposed sale of Louisville Bedding Company’s utility bedding retail business to Hollander Home Fashions and regarding our expectations related to the potential assignment of the exclusive distribution agreement mentioned in this release. We wish to caution the reader that these statements are only predictions. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will,” “intends,” “may,” “believes,” “anticipates,” “should” and “expects,” and are based on the company’s current expectations or beliefs concerning future events that involve risks and uncertainties. Actual events or results may differ materially as a result of risks and uncertainties facing Span-America, including: (a) the risk that the proposed sale of Louisville Bedding’s utility bedding retail business may not be completed due to customary contingencies included in the proposed transaction, (b) the possibility that the assignment of Span-America’s current distribution agreement to Hollander will not be successfully completed, (c) the possibility of adverse changes in customer and distributor relationships as a result of the proposed sale, and (d) other risks referenced from time to time in our Securities and Exchange Commission filings. We disclaim any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. We are not responsible for changes made to this document by wire services or Internet services.
