Under the agreement, Mountville Mills will acquire the physical assets of the Kleen-Tex division including three manufacturing operations in LaGrange, Georgia where both companies are based, and a distribution centre in Canada. However, it will continue to trade under its own name and brands.

The family-owned company already has a manufacturing unit in LaGrange and also one in Dalton, Georgia, as well as manufacturing units and sales offices in Belgium and China.

David Hart, Mountville’s president said that the acquisition would bring many benefits, but the greatest would be that customers would gain from improved marketing support an expanded product line and more efficient manufacture.

Kleen-Tex president, Bruce Howard said that the sale would allow Kleentex to concentrate on its international business. It believed that its greatest potential was in developing mat markets.

He said that the two companies would work together to support customers during the transitional period.