U.S. Industries acquires outdoor furniture division of Sunbeam Corporation for $84.5 million.
The transaction is subject to Hart-Scott-Rodino approval and other customary closing conditions. The closing is expected to occur in early March.
Sunbeam's outdoor furniture division is the leading producer of casual outdoor furniture in the U.S. It offers a complete line of aluminum, wrought iron and resin outdoor furniture and accessories such as cushions and umbrellas. It distributes its products primarily through specialty pool and patio stores, mass merchants and home centers under the "Sunbeam", "Samsonite" and other recognizable brand names. The outdoor furniture division has manufacturing facilities in Nacogdoches, Texas; Paragould, Arkansas; Waynesboro, Georgia; Sarasota, Florida, and Stanley, North Carolina, and distribution facilities at various locations throughout the United States. Over the last two years the division has invested over $28 million in capital to modernize and streamline their manufacturing facilities. The company has approximately 2,000 employees.
David H. Clarke, Chairman and Chief Executive Officer of U.S. Industries, said, "We are delighted to make this acquisition which we anticipate will be slightly accretive to this year's operating earnings. Sunbeam is the number one outdoor furniture company in the U.S. and this position fits perfectly with our strategy to be a brand leader in each of our markets."
John G. Raos, President and Chief Operating Officer, stated, "The product offering and channels of distribution of the Sunbeam Furniture business are a good fit with Jacuzzi and Ames. This acquisition provides us an opportunity to capitalize on our well-regarded brand names with product line extensions. Although this division has not done well recently, a restructuring begun last year will be completed at our direction in the initial year of ownership. We believe that our acquisition goal of a return on capital of 20% will be achieved within three years."
U.S. Industries is a diversified industrial management corporation with revenues of over $2.2 billion. Its companies include such well-known businesses as Jacuzzi, Ames garden tools, Ertl toys, Rexair vacuum cleaners, Lighting Corporation of America, EJ Footwear, Garden State Tanning and Tommy Armour Golf.
Disclosure Concerning Forward-Looking Statements
The forward-looking statements made in the above paragraphs of this release represent management's best judgment as to what may occur in the future. Various economic and competitive factors could cause actual results to differ materially from those discussed in such forward-looking statements, including some factors which will be outside of the control of the Company, such as consumer spending patterns and the availability of and rates for consumer credit, the level of residential construction in the United States, and the cost of raw materials.
CONTACT: Diana Burton