Folex to sell its outdoor carpet cleaner to private firm

Folextor Inc., the maker of outdoor carpet cleaners and lawn care products, is selling its outdoor floor cleaning and gardening equipment business to Greenway Partners LP, a company that specializes in selling carpet cleaners to small businesses.

The deal values the company at $2.5 billion, a person familiar with the matter said, asking not to be identified because the deal is private.

Foley said it will retain the outdoor carpet cleaning business, which is in its fourth year.

The company said the sale is subject to customary closing conditions, including a requirement that the sale not exceed 30% of the gross revenues of the company for at least six months.

Greenway, a private equity firm, is seeking to increase its portfolio of outdoor-care products by adding products to its portfolio including carpet cleaners, carpet cleaning wipes and composters.

Foleson said in the filing that the deal with Greenway is expected to close by June 15.

The retail sales price includes a $1.5 million cash payment and a $500,000 loan to Folesy, according to the filing.

Foex has not yet released an earnings statement for the third quarter ended May 31.

Ferex Corp., the largest U.S. outdoor carpet-cleaning and gardening company, has seen its outdoor products suffer amid competition from Amazon.com Inc. and other online retailers.

Foes’ outdoor products are not considered in-store products because they require installation and maintenance, according a report by Consumer Reports.

The magazine said Foes is not making enough profit from the outdoor products and that it is facing “unprecedented” consumer pressure.

Fowers’ outdoor-clearing and gardening products were among the top-selling products at retail in 2017.

It said in an earnings release that it had adjusted its 2016 profit for the fourth quarter to $1 billion, from a loss of $1 million.

Folsys outdoor-floor cleaning and lawn-care sales have declined over the past year, according the magazine.

Fores is part of a U.K.-based conglomerate of carpet cleaning and garden companies that includes Foles, Foles Garden & Lawn, and Foles.

The companies are based in the U.KS.

Foltas said in a statement that it will continue to operate Foles in the marketplace and that the company will continue expanding its retail business worldwide.

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