MONROE, MI - La-Z-Boy Inc. will sell upholstered furniture maker Bauhaus USA Inc. to an investor group led by Britt Allred, president of Bauhaus. Expected to close in the fiscal fourth quarter, terms of the transaction were not disclosed.
La-Z-Boy (NYSE: LZB) acquired Bauhaus in 1999 for $60 million. An operating company within its upholstery segment, Bauhaus offers primarily contemporary sofas, sectionals and occasional chairs that are marketed in the U.S., Canada, the Far East and Europe. The 25-year-old firm is based in Saltillo, MS.
Kurt Darrow, La-Z-Boy chairman, president and CEO, said Bauhaus' ownership transition should be seamless from a customer perspective. "From La-Z-Boy's perspective, with our emphasis on integrated retail, Bauhaus is not a strategic fit from a size perspective in terms of its revenue or earnings and we believe our resources will be further enhanced by narrowing our focus to our core business strategy," Darrow said.
The remaining brands in the company's upholstery segment are La-Z-Boy and England. La-Z-Boy's casegoods segment includes American Drew, Lea, Hammary and Kincaid.
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