Rotmans Furniture holding company announces first spin off
Photo | Grant Welker
Rotmans Furniture and Flooring, headquartered in Worcester and owned by holding company Vystar Corp., will close.
Vystar Corp., the Worcester holding company for Rotmans Furniture and Flooring, has announced it will spin off its RxAir air purifier business in the first-ever spin off for the company.
The move will create a publicly traded subsidiary called RxAir, Inc. that will be made up of the company’s air purifier products, assets and intellectual properties. The new company will cover the residential, healthcare and commercial markets.
As part of the spin off, a yet-to-be named outside entity will control a 51% interest in RxAir and make an investment of $3 to $5 million in production, tooling, inventory and operations needed to run RxAir. Vystar will award 39.1% of the RxAir shares as a pro-rata dividend to Vystar shareholders and retain 9.99% of RxAir shares for Vystar Corp.
Vystar is a holding company for Rotmans Furniture and Flooring, Fluid Energy Conversion, Nature’s Home Solutions, RxAir air purifiers and owner and creator of Vytex deproteinized natural rubber latex.
The spin-off does not require a vote by Vystar shareholders, but is subject to final approval of the transaction terms by the Vystar Board of Directors.
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