Mannington Mills has agreed to acquire Pharr Fibers and Yarns and Phenix Flooring as part of a spinoff of Pharr's flooring and textile operations.
Mannington Mills, a Salem, New Jersey-based maker of carpet, rubber, sheet vinyl, luxury vinyl, laminate, resilient and hardwood floors, expects to complete the purchase in early 2020. Terms of the sale between the two privately held companies were not disclosed in today's announcement.
But the new owners have pledged to keep the operations and staff of Pharr, which operates flooring and yarn production plants in Dalton, Georgia.
The acquisitions of Pharr Fibers & Yarns and Phenix Flooring will expand Mannington's floorcovering business into residential carpets for the first time.
"Residential carpet remains the largest category, and the time is right for Mannington to include it as part of our residential portfolio," said Russell Grizzle, president and chief executive officer for the family-owned business headquartered in New Jersey. "The synergies between Mannington and Pharr make this a logical move. Like Mannington, Phenix focuses on driving unique value to the customer, is a leader in style and design, offers world-class customer service, and is committed to domestic manufacturing."
Phenix Flooring and Pharr Fibers & Yarns are headquartered in McAdenville, North Carolina, with operations in Dalton, Georgia. The two divisions have about 900 workers.
Pharr also said it is selling Pharr High Performance, its yarn supplier for the protective apparel industry, to the Coats Group.
Pharr will continue to operate Belmont Land & Investment Co., developer of residential and commercial real estate and hotels; and Strand Hospitality Services, which manages a portfolio of hotel properties throughout the Southeast.
"Throughout its 80-year history, Pharr's spirit of innovation and willingness to adapt to change have allowed the company to evolve and succeed," Bill Carstarphen, Pharr president and chief executive officer, said in an announcement of the business sales on Tuesday. "These transactions reflect the next step in that evolution and will deliver great benefit to our customers, associates and communities. We know each of these groups will benefit tremendously from both Coats and Mannington and expect these transactions will result in a broad range of future opportunities and growth for our associates."
Carstapehn said the company "sought leaders in their industries with proven track records, and who understood and respected what we had built. Coats and Mannington emerged as ideal partners in all regards."
"Pharr will continue growing and diversifying our real estate holdings while exploring new companies to invest in and operate," Carstarphen said.