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Foam maker Vita New Zealand plans to acquire the New Zealand foams, flooring and bedding businesses of publicly listed Pacific Brands.
Acquisitions will include bedmaker Sleepmaker, Dunlop Flooring and Dunlop Foams, a move that would help strengthen Vita's footprint in local and offshore markets.
Vita, formerly owned by Skellerup, generates revenue north of $50 million a year and employs 400 people in three manufacturing plants.
"Vita is committed to future growth both within New Zealand and offshore via exports, particularly with furniture," Vita deputy chairman Michael Sexton said.
"We're very confident we have the skill and determination to consolidate both organisations into a globally competitive New Zealand based producer."
The deal, expected to be complete early next year, is subject to approval from New Zealand's anti-trust regulator.
Pacific Brands, a bedding and clothing business, has no intention of selling its Australian operations.
