Rotmans Furniture sold for $2M to CEO's latex company
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Steve Rotman
Rotmans Furniture, a family-run Worcester furniture retailer for more than five decades, has officially been acquired by Vystar, which longtime Rotmans chief executive Steve Rotman also leads as CEO.
Vystar announced Monday the agreement to acquire Rotmans for just over $2 million in cash and notes convertible into shares. Shares of Vystar have traded for less than 50 cents each for the past six years, with little change taking place Monday upon the announcement.
Rotmans calls itself the largest independent furniture retailer in the Northeast, with 200,000 square feet of space in Worcester and a workforce of 150 people. The Worcester store generates $6 million in bedding retail sales, with additional sales expected through Vystar orders that can be placed at Rotmans or online.
Vystar, which has a market cap of $51 million, will have roughly $30 million added to its revenue through the Rotmans deal, Steve Rotman said. The deal will also help Vystar with infrastructure for accounting, retail sales facilities and staff, customer service, warehousing and delivery, he said.
Vystar is the maker of a natural rubber latex and environmentally friendly technologies and product, with a new collection it launched in January for mattresses, toppers and pillows. The company said it is eyeing more environmentally friendly product initiatives. Steve Rotman was named CEO of Vystar in 2017 when the company was based in Atlanta. After his appointment to the top post, Rotman moved the company to Worcester.
In May, Vystar acquired Fluid Energy Conversion, whose technology Vystar says it will use to improve its air purification systems.
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