Culp Announces Definitive Agreement To Acquire Source For Custom Window Treatments Designed For Hospitality Market

HIGH POINT, N.C. — March 8, 2018 — Culp Inc. announced today that it has reached a definitive agreement to acquire Read Window Products Inc., a source for custom window treatments and other products for the hospitality and commercial industries. Based in Knoxville, Tenn., Read Window Products is a turn-key provider of window treatments offering measuring, sourcing, fabrication and installation services. Read Window Products’ primary custom product line includes motorization, shades, drapery and shower curtains. In addition, they supply soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters and pillows, for leading hospitality brands worldwide. Read Window Products has been in business since 1981, with annual revenues of approximately $11.0 million in 2017. Culp currently expects to fund the acquisition with cash and investments on hand without incurring any additional debt, with closing currently expected to occur at the end of March, subject to the satisfaction of customary closing conditions.

Commenting on the acquisition announcement, Frank Saxon, president and CEO, Culp said: “We have been seeking the right strategic business opportunity to support our growing sales of upholstery fabrics designed for the hospitality market. Today, we are pleased to announce a definitive agreement to acquire Read Window Products. We believe this additional product line will complement our existing upholstery fabrics business and enhance our ability to expand our sales and reach additional customers in the hospitality market. Read Window Products is already solidly profitable with operating margins in line with our current upholstery fabrics business. We have a unique opportunity to combine our outstanding design capabilities with another established business that enjoys a solid reputation in the hospitality market. This proposed acquisition supports our diversification strategy for both products and customers, and we look forward to the opportunities ahead to integrate Read Window Products’ operations with our existing upholstery fabrics business.”

Boyd Chumbley, president of Culp’s upholstery fabrics division, added: “As we continue to diversify our customer base, we believe the hospitality market offers significant growth opportunities for Culp. The proposed acquisition of Read Window Products supports this strategy, and we are pleased to welcome a proven market leader to Culp’s upholstery fabrics business. Adding window treatments to our product line is a logical step in Culp’s evolution as a complete source of fabrics for the hospitality market. The opportunity to work with an established source will allow us to respond to customer demand in an efficient manner. We are excited about the potential to leverage Culp’s global platform, product innovation and outstanding customer service with the added expertise of Read Window Products as we extend our market reach.”

Dale Read, CEO, Read Window Products, added: “We believe this is a great opportunity for Read Window Products, and we look forward to joining the Culp team. Our companies have similar family cultures and values with a shared commitment to product excellence and outstanding customer service. Together, we will be uniquely positioned to offer the full complement of high quality, decorative fabrics used inside a hotel room. We are excited about the growth potential this proposed business combination brings to the hospitality market.”

Posted March 9, 2018

Source: Culp