Lexington to Acquire Sligh Furniture

September 25, 2011  by in UnCategorized   

By Home Furnishings Business in Acquisition on September 26, 2011

Lexington Home Brands has reached a definitive agreement to acquire Sligh Furniture Company. Terms of the transaction were not disclosed.

The transaction, slated to close in October, will give Lexington an industry-leading presence in the home office and home entertainment categories while adding a well-respected brand to its portfolio which currently includes Lexington, Tommy Bahama Home and Henry Link Trading Co.

Sligh Furniture Company was founded in 1880 and is one of the industry's most venerable premier brands. Known for its innovation in the home office and home entertainment categories, Sligh designers have earned seven coveted Pinnacle Awards for outstanding design from the American Society of Furniture Designers.

"Lexington has a strong position in the upper-middle price points," said Phil Haney, president and CEO of Lexington Home Brands. "We have earned consistent and significant market share gains in the face of a tough economy by delivering great product. While our lifestyle collections currently include a broad assortment of home office and home entertainment products, the addition of Sligh to our brand portfolio will position us to become a core vendor in these categories for our dealers. Further, the addition of Rob Sligh to our executive team will prove a tremendous asset."

Rob Sligh, the fourth-generation president of Sligh Furniture Company, will continue in that role under the new ownership structure. He will take on additional executive management responsibilities at Lexington as senior vice president of business development and will be based out of the Lexington corporate center in High Point.

"With a family legacy that spans 131 years, and strong dealer relationships that have been the foundation of our success, it was important to me to identify the right partner as we begin an exciting new growth phase for our company," said Sligh. "The team at Lexington shares my core values, understanding the importance of product innovation, brand management, aggressive marketing and dealer relationships. They bring rock-solid financial resources, best-in-class operational support and the leverage of scale. In order to compete in a global environment and provide superior value for our retailers and consumers, it was in our best interest to partner with a proven industry leader. I couldn€™t be more pleased with this transaction, and look forward to joining the executive team at Lexington."

In order to leverage Lexington's infrastructure and resources, the Sligh product line will be stocked and shipped out of the Lexington distribution complex in North Carolina. Product development, marketing, customer service and credit functions will be managed from the Lexington corporate center. At the upcoming High Point Furniture Market, Lexington will build out a dedicated showroom area for the Sligh presentation on the second floor of its 100,000-square-foot showroom campus on National Highway.

"The strategic synergy of this acquisition became apparent to both Rob and me from our very first conversation," Haney said. "The benefits that will accrue to our dealers--in the form of product development, service and value--will be significant. This is one of those rare occasions in business where the alignment is ideal for both parties, and I couldn€™t be more excited about the opportunity before us."