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FOAMEX International Inc.
(NASDAQ: FMXI)
Foamex International, with a network of 46 facilities in the U.S., Canada and Mexico, is North America's largest manufacturer and marketer of flexible polyurethane and advanced polymer products. Foamex's quality foams are utilized primarily in five end-markets: carpet cushion; cushioning, including bedding products; furniture; automotive, including trim and accessories; and technical applications, including those for filtration, gasketing and sealing.
In July 1997, Foamex took several steps designed to improve operating performance and accelerate growth in our core polyurethane foam business. These steps included dividing Cushioning Products into two new product groups: Cushioning Products and Furniture Products. This brings to five the number of strategic business units at Foamex.
Five Business Units
- Carpet Cushion
-- Foamex's General Felt Industries (GFI) subsidiary leads the $750 million carpet cushion industry with a market share of approximately 42 percent.
- Cushioning Products
- Includes product buns and compressed roll goods for bedding manufacturers and intermediate furniture fabricators.
- Furniture Products
- Includes products for furniture manufacturers (polyurethane and fiber), in addition to Reflex (tm) cushioning and packaging fabrication. Furniture Products was reported previously as part of Cushioning Products.
- Automotive Foams
-- Foamex is the No. 1 supplier of foam products to the U.S. auto industry, with a 60 percent market share. Foamex's products are used in seating assemblies, headliners, dashboards, steering wheels, air and fuel filters and many more components which contribute to increased auto safety and comfort as well as greater manufacturing efficiency. On December 31, 1996, Foamex's eight automotive-related facilities achieved QS-9000 and ISO-9001 certification, becoming one of the first polyurethane manufacturers to complete the standards required by U.S. Automakers.
- Technical Foams
-- Foamex is the nation's No. 1 supplier of technical foams, used in everything from ink cartridges for Hewlett Packard's ink-jet printers (a result of a cooperative R&D effort between the two companies), to EKG pads, to batteries, to diapers. Technical products represents Foamex's fastest growing category, with a five-year compounded annual growth rate of 17 percent, and serves as an excellent example of Foamex's commitment to explore new uses for foam that reach far beyond cushions and mattresses.
For financial information, including quarterly earnings, go to
Corporate Information .
Foamex's History
Foamex's roots date back to 1983 with the acquisition of Scott Paper's foam division by `21' International Holdings, today, Trace International Holdings (TIHI), led by Marshall S. Cogan. Since then Foamex has grown both internally and through a string of strategic acquisitions:
- In 1986, TIHI added Foamex Products, the foam division of Firestone Tire & Rubber.
- In 1988, three regional producers were added to the mix -- Millfoam (from Miller Companies), Tupelo (from Sheller-Globe) and Curon (from Reeves Brothers).
- In 1990, certain North American assets were purchased from Recticel S.A, Europe's largest foam manufacturer. Also in 1990, Foamex L.P. was created as a holding company for the burgeoning business.
- In 1993, Foamex completed three more significant acquisitions: Great Western Foam Co., a major West Coast foam producer; General Felt Industries (GFI), the carpet cushion manufacturer in Saddlebrook, N.J.; and Perfect Fit Industries, Inc. of Monroe, N.C.
- Foamex completed its initial public offering in December 1993.
- Foamex added two businesses in 1994 -- TEFSA, a Mexican foam producer, and JPS Automotive Products Corp., the Greenville, S.C.-based automotive textiles company.
- In mid-1994, Foamex relocated its corporate headquarters to Linwood, Pennsylvania, a Philadelphia suburb.
- During 1995, Foamex installed new VPF equipment in two manufacturing facilities and began marketing proprietary and value-added VPF products.
- In November 1995, Foamex announced a comprehensive foam operations improvement plan and initiatives to reduce long-term debt, including the possible sale of its non-core businesses. The goal is to achieve annualized savings of $30 million in 1996 and $50 million in 1997.
- In June 1996, Foamex International and Recticel S.A., the largest manufacturers of flexible polyurethane and polymer products in North America and Europe respectively, announced a strategic alliance.
- In August 1996, Foamex completed the sale of Perfect Fit, its home furnishings subsidiary, to PFI Acquisitions Corp.
- In October 1996, Foamex completed the sale of JPS Automotive L.P., its automotive carpet, trim and textiles subsidiary, to a subsidiary of Collins & Aikman Corporation.
New Products and Technology
Foamex has long been known for its commitment to innovation and introducing new and value-added polyurethane and polymer products. Among the most promising recent introductions are:
- NEXOL
(tm) packaging polymers for innovative packaging systems. Created using patented VPF (tm) technology, Nexol expands Foamex's capabilities in meeting the special packaging requirements of sensitive or fragile products such as computers and other electronic components.
- REFLEX (tm)
, a new line of advanced polymer cushioning products designed to improve comfort, quality and durability in upholstered furniture, was introduced in December 1996. The products are manufactured using Foamex's patented VPF (tm) technology combined with proprietary polymer chemistry. The product line includes four types of cushion wrap and two types of cushion cores.
- VPF (tm) Products
: Foamex's proprietary VPF technology has been adopted by several furniture and bedding manufacturers. Action Furniture, Berkline and King Hickory are all now using VPF on upholstered furniture products. In the bedding area, Simmons has introduced two new high-end mattress products incorporating two VPF polymers.
- SMT (tm) Products
: The most exciting new SMT product introduced by Foamex is a foam-backed carpet system, which reduces vehicle weight by two to six pounds per vehicle and significantly diminishes interior noise. The SMT carpet system is being used by a major North American automaker's line of 1997 minivans, and represents the first automotive application of SMT. Other SMT products include mattress overlays, specialty pillows and ComfortWearÒ
carpet cushion.
- Composite Products
: Composites technology, which enables the fusion of foam with other materials such as fabric or carpet, is increasingly used by Foamex in new products. Among the products created with composites technology are several for the automotive industry, including headliner blanks, package shelves, cabin filters and floor carpet systems.
International Initiatives
Foamex's long-term strategy is to expand its markets outside of North America. Recent initiatives related to that effort include:
- Alliance with Recticel
: In June 1996, Foamex announced a strategic alliance with Recticel, the largest manufacturer of polyurethane products in Europe. Through the alliance, the two companies will jointly design, manufacture and market products for the automotive industry.
- Foamex Asia
: The creation of a new division to focus exclusively on expanding Foamex's presence in Asian markets was announced in August 1996.
- Mexico Expansion
: As a result of the recent growth of its operations in Mexico, Foamex is has expanded its facilities there, which serve the automotive and cushioning markets.
Senior Management Team
- Andrea Farace
: Chairman of the Board, Chief Executive Officer
- Marshall S. Cogan
: Vice Chairman, Chairman of the Executive Committee
- Salvatore J. (Sam) Bonanno
: President and Chief Operating Officer
- Kenneth R. Fuette
: Senior Vice President of Finance, Chief Financial Officer, Chief Accounting Officer
Senior Operating Committee
- Andrea Farace, Chairman of the Board, Chief Executive Officer
- Salvatore J. (Sam) Bonanno, President and Chief Operating Officer
- Gregory M. Barbe, Executive Vice President, Cushioning Products
- William H. Bundy, Executive Vice President, Furniture Products
- Terry J. Kall, Executive Vice President Carpet Cushion Products
- Gregory W. Brown, Executive Vice President, Automotive Products
- Rolf E. Christensen, Executive Vice President, Technical Products
- Barry Zimmerman, Executive Vice President, Manufacturing Services and Corporate Development
- Christine A. Henisee, Executive Vice President, Business Development and Technology
- John E. Turnour, Senior Vice President, Purchasing
- Kenneth R. Fuette, Executive Vice President, Chief Administrative Officer and Chief Financial Officer, Administration (Finance, Accounting and Legal Services)
- Veronica P. Forster, President, Foamex de Mexico, serves as an advisor to the Committee.
Board of Directors
Salvatore J. Bonanno
President and Chief Operating Officer
Foamex International Inc.
Marshall S. Cogan
Vice Chairman
Foamex International Inc.
Chairman and Chief Executive Officer
United Auto Group, Inc.
Etienne Davignon
Chairman
Société Générale de Belgique
Andrea Farace
Chairman and Chief Executive Officer
Foamex International Inc.
Robert J. Hay
Chairman Emeritus
Foamex International Inc.
Stuart J. Hershon
Orthopedic Surgeon and Investor
John V. Tunney
Chairman
Cloverleaf Group, Inc.
Revised 8/19/97
Corporate Headquarters: |
Foamex International Inc.
1000 Columbia Avenue
Linwood, PA 19061
800 776-FOAM (3626)
610 859-3000 |