La-Z-Boy targets millennials in Joybird e-commerce furniture acquisition
July 18, 2018 | 11:11 am CDT
Photo By Joybird
MONROE, Mich. - La-Z-Boy Inc. has acquired Joybird, an e-commerce retailer and manufacturer of upholstered furniture. The deal is expected to close early in the second quarter of fiscal 2019, at which time Joybird will become a wholly-owned subsidiary of La-Z-Boy.
Joybird, which had annual revenue of around $55 million last year, is the trade name of Stitch Industries Inc. Headquartered in Commerce, California, the company manufactures custom, mid-century modern upholstered furniture, and has experienced rapid growth, says La-Z-Boy.
“The Joybird team has created an incredible brand and online shopping platform and this combination provides great synergies for both companies," said Kurt L. Darrow, La-Z-Boy CEO and president. "For La-Z-Boy, it will allow us to better reach millennial and Gen X consumers, leverage our supply chain assets and provide us with a greater presence online."
"For Joybird, the speed of its growth has been constrained by limited capital and production capacity," continued Darrow. "When we combine our world-class supply chain with Joybird’s current manufacturing capabilities, it will be able to accelerate expansion and better service its customers, by improving production speed and shortening delivery times, while lowering costs."
Joybird's co-founders will continue to lead and grow Joybird, with responsibility for sales, customer service, marketing and brand development as well as the overall operation of the business. Operations will be supported by La-Z-Boy supply chain capabilities which include procurement and manufacturing.
Christopher Stormer, one of the four co-founders of Joybird, said, “Joining forces with La-Z-Boy will be a strategic game changer for our company as it will provide access to resources and additional capacity."
Terms of the deal were not disclosed and it is subject to customary closing conditions. La-Z-Boy will supply financial information relating to the transaction when it reports its fiscal 2019 first-quarter results in August.
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