LADD COMPLETES ACQUISITION OF FOURNIER FURNITURE
LADD COMPLETES ACQUISITION OF FOURNIER FURNITURE HIGH POINT, N.C., July 2 /PRNewswire/ -- LADD Furniture, Inc.
(NASDAQ-NMS: LADF) chairman and chief executive officer Richard R. Allen announced that LADD has today completed its previously-announced acquisition of substantially all of the assets of Fournier Furniture for $8.4 million. The purchase price consisted of $4.9 million in cash and the assumption by LADD of $3.5 million of Industrial Development Authority debt.
Headquartered in Minneapolis, MN, Fournier Furniture is a privately-held manufacturer of ready-to-assemble ("RTA") household furniture with sales in excess of $30 million in its most recent fiscal year. Founded in Canada 20 years ago, Fournier employs 282 people and operates a three-year old 157,000 square-foot manufacturing plant in St. Paul, VA and a 34,000 square-foot distribution center in Toronto, Canada. The company's products are marketed under the Fournier brand name through mass merchandisers, home improvement stores, department stores, office super stores, and traditional furniture retail outlets. Commenting on the acquisition, Allen said, "We are very pleased to be able to complete this purchase. LADD's long-term strategy is to expand and grow its business operations into each of the major segments of the home furnishings industry. This acquisition puts LADD into a new product category, RTA furniture - a segment which has been growing significantly faster than the traditional furniture industry - and broadens our distribution into several new marketing channels. In addition, Fournier's significant Canadian business will further strengthen LADD's growing international sales base." Allen said the acquisition should have a positive effect on LADD's earnings over the remainder of 1992. Allen said that Fournier Furniture will be run as an independent LADD operating company, consistent with the decentralized organizational structure under which LADD operates its 12 other business units. All Fournier officers, managers and employees will be employed by LADD through its new subsidiary, Fournier Furniture, Inc., Allen said. Fournier's president and chief executive officer, Gregg Sammons, noted that the affiliation with LADD will permit Fournier to accelerate its growth plans and facilitate the development of new marketing programs and products. "We are very pleased to be associated with one of North America's largest residential furniture manufacturers, especially one with LADD's reputation and stature in the furniture industry," Sammons said. "LADD's financial strength and marketing expertise will be especially beneficial to Fournier's future growth." LADD, one of the largest U.S. residential and contract furniture manufacturers with 1991 sales of $430 million and total employment in excess of 6,300, markets its broad range of wood, upholstered and metal furniture under the major brand names American Drew, American of Martinsville, Barclay, Brown Jordan, Clayton Marcus, Daystrom, Design Horizons, Lea Industries and Pennsylvania House. LADD also owns and operates two support companies, Lea Lumber & Plywood and LADD Transportation and its stock is traded on the O-T-C National Market System under the NASDAQ symbol LADF. -0- 7/2/92 /CONTACT: John J. Ong, LADD Furniture, Inc., 919-888-6353/ (LADF) CO: LADD Furniture, Inc.; Fournier Furniture ST: North Carolina IN: REA SU: TNM
JZ -- CH004 -- 6328 07/02/92 16:41 EDT
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|Date:||Jul 2, 1992|
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