FOR IMMEDIATE RELEASE
RONILE, INC. TO ACQUIRE THE BACOVA GUILD, LTD.
(Rocky Mount, Virginia, June 19, 2001) – Ronile, Inc. announced today that it will acquire The Bacova Guild, Ltd. from Burlington Industries, Inc. The Bacova business is a leading supplier of floormats and accent rugs located in Low Moor and the Village of Bacova, Virginia. The transaction is expected to close by June 30, 2001. The new company will operate as Bacova Guild, Ltd. and sell under the Bacova® and other brands.
Phillip C. Essig, President and Chief Executive Officer of Ronile, Inc., said: "We are thrilled about the prospect of owning one of the country’s marketing leaders in the floormat and accent rug categories. The Bacova business is strong and growing. The Bacova and Ronile cultures are highly similar particularly in their dedication to provide industry leadership in customer service, design and product development. Bacova’s Associates are an outstanding group; and they are as excited as we are about joining together to take this business to levels not seen before. Ronile is committed to providing Bacova with the resources needed to allow it to become a dominant player in multiple categories in the home furnishing industry. We are confident of our ability to complete this acquisition as seamlessly as possible and with the least possible disruption to our customers."
Essig also announced the appointment of Charlie Bowers as President of Bacova, effective July 1, 2001. Bowers has over 30 years of experience in the home furnishings industry and has been at Bacova since 1989. Bowers said, "Bacova’s future has never looked brighter. I look forward to working with Phillip and the entire Ronile family to build one of the industry’s most exciting and important vendors. Bacova has always been recognized as a leader in design and product development. Our marketing team has consistently developed products that perform well over-the-counter for our customers. We will continue this high level of performance for our customers. Ronile will provide the financial, operational and management resources needed to build a group of businesses that will make us an industry leader in multiple categories."
Ronile and Bacova will continue to operate as separate businesses with combined sales in excess of $120 million. Both companies are 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.
Ronile is the leading supplier of space-dyed yarns to the commercial carpet market. Ronile meets the commercial interior market’s demand for accent yarns that add beauty and performance to superior carpet products. Ronile supplies each of the top ten U.S. commercial carpet mills and 18 of the top 20. Products containing Ronile yarns are consistently among the best selling commercial carpet products in the marketplace. Ronile’s Design Department and innovative product development efforts set the standard within the industry. With consistently high service and satisfaction rankings from its customers and a manufacturing culture committed to quality, innovation and customer responsiveness, Ronile is a strong performer in an industry that has prospered over the past decade.
Founded by Abe and Elinor Essig in 1984, Ronile has manufacturing plants in Rocky Mount, Virginia and Lafayette, Georgia and a workforce of 450 employees. Through an Employee Stock Ownership Plan, Ronile’s employees today own about one-third of the company. Ronile also diversified in recent years to supply space-dyed yarns to the home furnishings, apparel, craft and automotive upholstery markets and operates a yarn extrusion plant for the production of polypropylene yarns.
Bacova® is the marketing leader in printed floormats and accent rugs. Its products are sold by the country’s leading retailers. Consumers identify Bacova® products as beautiful, value-oriented additions to their homes. Bacova is well regarded by the industry in customer service and product development. Bacova creates or licenses original artwork that is printed on various textile and natural materials. Most printing is performed in the United States. Bacova in recent years has balanced its domestic operations with global capabilities that allow it to source the highest quality and most competitive raw materials and finished products anyplace in the world.
Founded in 1957 in Bath County, Bacova’s home furnishings reputation was built on the concept of utilizing local artists to create fashionable floormats and rugs. Bacova was one of the fastest growing home furnishings companies into the 1990’s. Burlington acquired the business in 1995. Burlington expanded on Bacova’s successful history, emphasizing high-quality, fashion-oriented flooring products. Burlington also consolidated Bacova’s varied operations into a state-of-the-art manufacturing and distribution center in Low Moor. Bacova’s manufacturing and distribution operations will continue to operate from the Low Moor plant. Its art, design and marketing departments remain in the company’s original building in the Village of Bacova, Virginia. All products, whether manufactured in the U.S. or overseas, will continue to be designed by Bacova art and design group. The marketing and sales group headed by Mr. Bowers will be based in Greensboro, North Carolina.
SunTrust Bank and First Union National Bank are providing the financing for the acquisition and a revolving line of credit for Bacova’s operations.
For more information, please call Sylvia Bussey at (800) 233-7849, ext. 4647.
# # #