LOS ANGELES - Effective December 2005, Los Angeles-based paint manufacturer Diversified Coatings, Inc., (DCI) acquired the Morwear® brand of architectural paint and coatings products from Morwear Manufacturing, Inc. (MMI) in a transaction approved by Judge Ellen Carroll in United States Bankruptcy Court.

After buying the Morwear brand from the former Smiland Paint Company in mid-2004, MMI filed its bankruptcy case in August 2005, after posting sales of $2 million in its final month of operations.

The principals of DCI were well acquainted with the Morwear brand and moved quickly to preserve the value of the bankrupt estate. As the court-appointed interim manager of MMI since October 1, 2005, DCI rehired most of the workforce and restarted the production and distribution of Morwear paints and specialty coatings. Led by veteran entrepreneurs and management executives from the paint and construction industries, DCI seeks to quickly regain the brand's traditional market share in the United States while continuing to expand its successful export business in Asia and Mexico.