FOR IMMEDIATE RELEASE
Bacova Guild, Ltd. To Acquire Bath Business from Burlington Industries, Inc.
(Rocky Mount, Virginia, April 12, 2002) – Ronile, Inc. announced today its wholly owned subsidiary, Bacova Guild, Ltd., acquired from Burlington Industries, Inc. the Burlington bath consumer products assets including certain inventories and intellectual properties. The transaction has been completed and is effective as of April 12, 2002.
Bacova is a leading supplier of floor mats and accent rugs with operations in Low Moor and the Village of Bacova, Virginia; High Point, North Carolina, and a showroom at 295 Fifth Avenue in New York City. The Bath Business has strong synergies with Bacova’s existing accent rug and floor mat businesses. The new company will operate as a division of Bacova and sell under the Bacova® Bath and other brand names. Ms. Kathy Fowlkes, who headed the business at Burlington, will join Bacova as Business Manager – Bath.
Bacova Bath will focus on decorative products and will create or license the original artwork and other designs used on the products. Whether manufactured in the U.S. or overseas, Bacova will direct all design, marketing and distribution efforts of the new division.
Phillip C. Essig, President and Chief Executive Officer, said: "We are thrilled about bringing Bath into the Bacova family of products. This represents our first step to grow Bacova through acquisition. From the start, we viewed Bacova and its successes in the market as a terrific platform on which to build a leading consumer products company. The Bath Business products are a perfect complement to Bacova decorative rugs and mats. We are excited about being able to bring Bacova’s industry leadership in customer service, design and product development to Bacova Bath. We are fortunate to have Kathy Fowlkes joining our team. Ronile is committed to providing Kathy with the resources needed to allow her to succeed in developing this business and becoming a stronger supplier to our retail partners. We are confident of our ability to complete this acquisition as seamlessly as possible and with the least possible disruption to our customers."
Charlie Bowers, President, says, "I welcome working with Kathy to meet the needs of our customers with Bath Products that are right for consumers throughout the market. Our future gets brighter as we add to our structure businesses that work together and make us more important to the overall market. Bacova has always been recognized as a leader in design and product development and it is our every intention to give Kathy Fowlkes the tools to continue the tradition. Bacova will provide the financial, operational and management resources needed to build a bath businesses that will make us an industry leader."
Bacova will continue to direct Bacova Bath out of its management headquarters in High Point, NC. Ms. Fowlkes will head the business and report to Mr. Bowers. Kathy brings over twenty years experience to this business handling buying, merchandising and product development with J. C. Penney. This combined with her worldwide experience prepares her well to lead this Bacova Bath business unit.
The design, manufacturing and distribution activities of the business will be run from Bacova existing locations in Virginia. Bacova recently added 70,000 square feet of additional distribution space at its Low Moor location. Bacova is committed to maintaining a vibrant U.S.-based manufacturing and distribution competence, while continuing to look at opportunities to source products and raw materials overseas.
Founded in 1957, Bacova is the marketing leader in printed floor mats and accent rugs. Ronile, Inc. is the leading supplier of space-dyed yarns to the floorcovering market.
For more information, please call Sylvia Bussey at (800) 233-7849, ext. 4647.
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