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Manufacturer of Aireloom Mattresses Plans Eastern Footprint

with Acquisition of Pennsylvania Plant


E. S. Kluft & Co. to Buy Lancaster County Facility From Park Place


May 10, 2011 - E. S. Kluft & Company, maker and distributor of the Aireloom and Kluft brand mattresses, said today it had signed a letter of intent with Park Place Corporation to acquire its 86,000-square-foot manufacturing and distribution center in Denver, PA, and retain approximately 40 employees. Kluft will use the facility to service dealers in the eastern and central portions of the United States.

The deal is expected to close in late May after which the facility will be retrofitted for Kluft’s production processes and training of employees will begin.

The plant, located in central Pennsylvania near Lancaster, was originally built in the 1970’s. Park Place purchased it in 2007 and has used it as a satellite-manufacturing center from its main base in Greenville, SC.

For Kluft, the acquisition of the Pennsylvania plant will provide the delivery lead time needed to properly service current and prospective customers in the eastern portion of the country who until now were relying on deliveries from its Southern California facility.

“Kluft and Aireloom brands are so unique in the industry that there has been growing interest by high-quality retailers who have wanted to carry the brands but were hesitant to make a commitment because we were only producing in California. This new facility changes all that as we can very efficiently and effectively service these accounts. It will open many new retail doors for us,” said E. S. Kluft & Company President and CEO Earl Kluft.

“As our brands continue to grow nationally, we needed an eastern facility to reach new prospects more effectively and to better service the growing needs of our dealers there. The Pennsylvania plant is strategically located next to major highways and has a wonderful workforce steeped in a great culture of producing quality bedding. We expect to complete our due diligence over the next few weeks and close the transaction quickly so we can begin production shortly,” he added.

For Park Place Corporation, the sale realigns the company’s manufacturing and distribution with the area of responsibility under the license agreement signed with King Koil Licensing Co. on August 1, 2010.

“We are very pleased that our Pennsylvania associates will continue in the mattress making profession. Earl Kluft is a quality and design leader with a long-term commitment to the industry,” said Park Place Corporations President Jimmy Orders.

Terms of the transaction were not disclosed.

In 2004, third-generation mattress maker Earl Kluft founded E. S. Kluft & Company and created the next hallmark of luxury bedding. Kluft’s Aireloom® designs offer artisanal quality and legacy features such as hand-tied coils and side-stitching. Kluft lines feature the most advanced materials and technologies available in the world, including the highest quality Belgian jersey knits and damask fabrics, Ellison & Robbins nested coils, New Zealand Joma wool, natural Talalay latex, bio-based foams and natural, eco-friendly fibers. Kluft is available in more than 350 select U.S. retailers and internationally.

Park Place Corporation, founded in 1931 as Orders Mattress Company, is headquartered in Greenville, SC, on a 40-acre campus in a Century 2000, state-of-the-art designed facility. Park Place manufactures mattresses primarily under the Park Place, King Koil and Comfortaire brands.

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