COLUMBUS — OMNOVA Solutions of Fairlawn, Ohio, has sold certain assets of its North American commercial wallcovering business to J. Josephson Inc., a private commercial wallcovering producer based in New Jersey.
The sale includes printing cylinders, certain equipment, trademarks, contracts and other assets associated with OMNOVA’s domestically-produced commercial wallcovering brands.
The sale excludes OMNOVA’s Columbus manufacturing facility. OMNOVA’s Under the agreement, OMNOVA will continue to manufacture commercial wallcovering products for J. Josephson for a period of approximately 12 to 15 months as part of an orderly transition of production from OMNOVA’s Columbus plant to the J. Josephson plant in South Hackensack, N.J.
Concurrent with the transfer of commercial wallcovering production to J. Josephson, OMNOVA will consolidate manufacturing of coated fabric, film, ICS and specialty products made at its Columbus plant into its other domestic and international Decorative Products facilities. Following the 12 to 15 month transition, OMNOVA plans to cease manufacturing in Columbus, but the company will continue its Decorative Products distribution operations at the site, including customer service and technical support.
Kevin McMullen, OMNOVA Solutions’ chairman and CEO, said, “While our presence in Columbus will be reduced, we are pleased that our distribution operations and our ties with the community will continue. Columbus has been an important part of the OMNOVA story since the plant first opened in 1963, and we value the long-standing local government and community support. At the same time, we regret the impact the gradual transition of manufacturing out of Columbus will have on many of our employees who have done an exceptional job of staying focused on serving customers during a very difficult and challenging period. We are very appreciative of our employees’ many contributions, and we will continue to assist and support our workers throughout the transition.”
Under key terms of the transaction, OMNOVA will receive approximately $10 million in cash and three years of royalty payments for future sales of OMNOVA-based patterns. In addition, OMNOVA will retain approximately $7 million in net working capital and the cash flow associated with those assets. This will be partially offset by Columbus plant transition and manufacturing wind-down costs over the next 12 to 15 months.
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