HIGH POINT, N.C. and TUPELO, Miss.— Heritage Home Group LLC has agreed to sell the Lane Furniture business to United Furniture Industries. The sale is expected to be completed before the end of the year and includes Lane's 750,000-square-foot upholstery plant in Belden, Mississippi, and its 202,000 square-foot Royal Development recliner mechanism facility in High Point, North Carolina.
Terms of the transaction, announced Nov. 21, were not disclosed.
“The sale of the Lane business is an important step in the transformation of HHG,” said Pierre de Villemejane, CEO. “The transaction will significantly reduce the complexity of our portfolio and sharpen our focus on the growth of our core stable of well-recognized brands, including Broyhill, Thomasville, Henredon, Drexel, Lane Venture and Hickory Chair. At the same time, the proceeds of the sale will provide additional capital to further strengthen our prestigious portfolio and fund expansion.”
In the statement, de Villemejane added, “We are very excited that Lane will become part of UFI, which has a strong track record in manufacturing, distributing, sourcing and selling home furnishings throughout the U.S. and Asia,” he continued. “UFI is committed to the growth and development of Lane, and is based in Lane’s hometown of Tupelo, which will provide important continuity for the people associated with the business. Our executive team thanks all Lane employees for their dedication and wishes them continued success as the business begins an exciting new chapter in its storied history.”
Larry George, president of United Furniture, said, “We are excited about the opportunity to include the Lane brand with our United Furniture and Simmons branded products, and equally excited to have the Lane team join the United Furniture family.”
"We wanted to acquire Lane because it is an American company with values much like ours,” George added. “Their craftsmanship is excellent, and Lane reclining mechanisms set the industry benchmark for quality, durability and ease of use. Our companies are a perfect fit and poised for growth.”
UFI said it plans to retain all current Lane employees. UFI is a privately held residential furniture manufacturer headquartered in Tupelo, Mississippi. The company was formed through the merger and acquisitions of Parkhill Furniture Co., Comfort Furniture and United Chair. It is also the exclusive U.S. manufacturer of Simmons Upholstery. UFI has operating plants in Mississippi, North Carolina and California and employs more than 3,500 employees.
Heritage Home Group was formed in November 2013 following the purchase by KPS of the bankrupt Furniture Brands International. In 2015 the home furnishings giant moved its headquarters from St. Louis, Missouri, to High Point, North Carolina.
Lane Furniture traces its roots back to 1912 when John Lane purchased a box plant in Altavista, Virginia, and son Ed began building cedar chests. Lane's product line expanded in 1951 to include occasional tables, casegoods in 1956, and accent pieces in 1965. In 1972, Lane entered the upholstered furniture industry with the acquisition of reclining chair manufacturer Acton Industries.
Both Heritage Home Group and United Furniture Industries are included in the FDMC 300 listing of largest North American wood products manufacturers.