LFI To Sell Sunbury, Berkline, Benchcraft
January 28, 2002
Hickory, NC (USA) – LifeStyle Furnishings International Ltd. (LFI) is negotiating the sale of its Berkline and BenchCraft divisions (as a unit) and its Sunbury fabrics division in separate transactions. LFI said that these units are being sold in management led buyouts with strong financial partners. The transactions are expected to be completed in the first quarter of 2002.
"With regard to the Berkline/BenchCraft and Sunbury sales, both of these transactions will result in well-financed, independent companies that historically have been leaders in their respective market segments and will be led by seasoned management teams," said Alan Cole, CEO and President of LifeStyle Furnishings.
LFI has also sold three of its business units, Henredon, Drexel Heritage and Maitland-Smith, to Furniture Brands International (FBI), according to a company press release.
The transaction was reportedly valued at $275 million ($175 million in cash and $100 million in FBI common stock). "The divestiture of these companies is consistent with LFI''s previously announced de-leveraging strategies," Cole said. "In addition to reducing bank debt and increasing the company's financial flexibility, LFI will participate in the future success of certain of these companies through its stock ownership in FBI. "LFI, with its principal business units of Lexington Home Brands and Robert Allen Fabrics (including Beacon Hill Designer Showrooms) will emerge essentially free of bank debt as a result of these strategic initiatives," said Cole, "and will be well positioned with branded products and very efficient systems, respectively, to meet the challenges of today''s slow economy and changing market conditions and to take advantage of tomorrow''s growth opportunities."
LifeStyle Furnishings International Ltd. is a leading manufacturer and marketer of branded home furnishings.
"With regard to the Berkline/BenchCraft and Sunbury sales, both of these transactions will result in well-financed, independent companies that historically have been leaders in their respective market segments and will be led by seasoned management teams," said Alan Cole, CEO and President of LifeStyle Furnishings.
LFI has also sold three of its business units, Henredon, Drexel Heritage and Maitland-Smith, to Furniture Brands International (FBI), according to a company press release.
The transaction was reportedly valued at $275 million ($175 million in cash and $100 million in FBI common stock). "The divestiture of these companies is consistent with LFI''s previously announced de-leveraging strategies," Cole said. "In addition to reducing bank debt and increasing the company's financial flexibility, LFI will participate in the future success of certain of these companies through its stock ownership in FBI. "LFI, with its principal business units of Lexington Home Brands and Robert Allen Fabrics (including Beacon Hill Designer Showrooms) will emerge essentially free of bank debt as a result of these strategic initiatives," said Cole, "and will be well positioned with branded products and very efficient systems, respectively, to meet the challenges of today''s slow economy and changing market conditions and to take advantage of tomorrow''s growth opportunities."
LifeStyle Furnishings International Ltd. is a leading manufacturer and marketer of branded home furnishings.
