Greenville, South Carolina -- Span-America Medical Systems expects bedding sales to drop off between now and the middle of the next financial year.
The estimate is based on Sinomax USA – which this week announced plans to buy more than 50% of Delaware-based Dormeo – not distributing Span-America’s bedding to its largest retail customer.
In a statement Span-America said it “expects to transition its largest retail account for consumer bedding products to Sinomax USA, its current distributor for the same account.”
The account, worth $6.6m, or 10% of total sales over 2015, is expected to move to Sinomax in May 2016, according to a statement from Span-America. Span-America expects sales to Sinomax of $4m in H1 2016 - 11% of Span-America’s total sales, the firm said.
Span-America president and ceo Jim Ferguson said the situation “provides Span-America with the opportunity to refocus on our core medical business that has a more stable long-term growth record.”
Span-America manufactures pressure management products, such as foam bedding toppers, for supply to the medical market. It also supplies custom foam products to commercial and industrial markets.