RONILE, INC. PURCHASES ASSETS FROM COMPETITOR COLORMARKS, INC.
(Rocky Mount, Virginia, December 7, 2001) – Ronile, Inc. announced today that it completed the acquisition of certain assets from Colormarks, Inc., a South Carolina corporation.
Colormarks directly competes against Ronile in the business of manufacturing and selling space-dyed yarn to the commercial carpet industry. Prior to the acquisition, Colormarks operated a production facility in Williston, South Carolina, and generated annual sales in excess of $10 million.
Ronile did not purchase the Williston facility and is moving the purchased assets to its plant in Rocky Mount, Virginia. Ronile plans to integrate the Colormarks business into Ronile’s existing operations.. Following the acquisition, Colormarks ceased all operations and will no longer sell space-dyed yarns to the carpet industry.
Ronile has already seen an increase in orders at its Rocky Mount plant. Phillip C. Essig, Chief Executive Officer of Ronile, stated, "We are pleased that we were able to take advantage of this opportunity in today’s economy. We are strong financially and believe that the current environment may provide additional opportunities. Colormarks has been a strong competitor for over a decade and has maintained a significant market share during that time. We expect business to increase significantly at our Rocky Mount plant over the next several months. As the economy rebounds and we fully consolidate the new business opportunities, we expect our business to be stronger than anticipated in 2002."
Terms of the acquisition were not disclosed.
Ronile, an employee-owned company, is the world’s leading supplier of space-dyed yarns to the commercial carpet and other industries. Headquartered in Rocky Mount, Virginia, Ronile has a production plant in Lafayette, Georgia and a Sales Office in Chattanooga, Tennessee. Ronile also owns Bacova Guild, Ltd., a marketing leader in printed floor mats and accent rugs. Bacova has design and production facilities in Bacova, Virginia and Low Moor, Virginia, sales and executive offices in Greensboro, North Carolina, and a showroom and sales office in New York, New York.
For more information, please contact Sylvia Bussey at (540) 484-4647.
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