Announcement of IFC invests in Berry, Selvey y Cia. S.A. in Colombia on February 6, 1961

.· INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET, N.W., WASHINGTON 2!5, D. C. TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 52 SUBJECT : ~C invests in Berry., Selvey y Cia. S.A. FOR.RELEASE in Colombia A. M. Newspapers February 6, 1961 T~ International Finance Corporation announced today a commitment to invest US$170,000 in Be?TY, Selvey y Cia. S.A., a new Colombian corporation., to "---~~..._..,-~._-:.,.... ~ expand and modernize the manufacture of home furniture and furniture components. The new corporation will continue the present operations of Berry, Selvey y Cia. Ltda., a furniture firm, and of Almacenes Morfee ttda., an associated retail sales firm. Principal stockholders are Mr. Calvin G. Berry and Mr. Leo J. Selvey, • who are also respectively President and Vice President of the business. Other shareholders of the corporation include Dr. Jorge Ortiz Mendez, Dr. Guillermo Micolta s., and Industrias Metalicas de Palmira. S.A. (IMP), a metal furniture firm. Berry, Selvey y Cia. Ltda. was established in Bogota in 19.5.5; it has manufactured a variety of home furniture ranging from mattresses and box springs to sofas, chairs and hassocks. Berry, Selvey is today the largest Colombian producer of mattresses and has a product line priced to cover the full market range from popular-priced cotton-filled mattresses to high-quality inner spring mattresses and box springs. Early in 1960, Berry, Selvey began also production of good-quality upholstered furniture for the medium- and popular-priced markets. Alma.cenes • Morfeo Ltda. started its business in 1958 to intensify the promotion arid sale of Berry, Selvey products in the retail market.  - 2 .. During the coming year, the new corporation will move its operations • from Bogota to Palmira near Cali; operations at the new site will enable the company to expand and diversify production and to reduce. costs. The new plant will consist of two one-story buildings with total floor area of more than l00,000 square feet; a railroad spur and unloading track are located on the site. Total cost of the project is estimated at the equivalent of nearly US$500,000. In addition to the IFC investment, financing will be provided by the partners of Berry, Selvey y Cia. Ltda. and by IMP. The IFC investment will be in U.S. unsecured dollar notes, bearing 7% interest, payable in dollars, and maturing between 1965 and 1970. IFC expects also to receive additional interest related to profits, and an option on capital stock, <;f the Colombian, corporation. IFC 's commitment is subject to completion of the necessary legal • fonnalities. •