Pillowtex Acquires Fieldcrest Cannon

Pillow and sheet maker Pillowtex Corp. is expanding its bath line by purchasing towel maker Fieldcrest Cannon Inc. for $400 million to create one of the nation’s largest makers of bed-and-bath products.

Pillowtex makes bed pillows, mattress pads, blankets, throws and down comforters under the Ralph Lauren, Disney and Martha Stewart names. Fieldcrest Cannon makes towels, sheets, comforters, dust ruffles and rugs, under the names Royal Velvet, Cannon, Touch of Class and Charisma.

“The combination of Pillowtex and Fieldcrest Cannon creates a true one-stop shopping source for home textiles,” said Charles M. Hansen Jr., chairman and chief executive of Pillowtex.

Hansen also expects the combination will save the companies $30 million annually, but said it was “terribly premature” to discuss possible work force reductions.

“What’s going to happen in the future, I don’t know,” Hansen said. “At this time, we don’t plan any closure or change or anything in the Fieldcrest facilities.”