La-Z-Boy Sells American of Martinsville

August 1, 2006  by in UnCategorized   

By Home Furnishings Business in Case Goods on August 2006 La-Z-Boy Inc. has sold its American of Martinsville subsidiary, to Hancock Park Associates, a Los Angeles-based private equity firm. Terms of the transaction were not immediately disclosed, although the company expects it will result in a small gain, which will be reported when the company issues its fiscal 2007 first-quarter results Aug. 15. American of Martinsville’s net sales for fiscal 2006 represented approximately 5 percent of La-Z-Boy Incorporated’s total revenue.

“Our business model and long-term strategy are focused on providing comfortable and stylish furnishings for the home and, therefore, we have made a number of changes over the past two years to better align our company’s business units with that model,” said La-Z-Boy President and CEO Kurt Darrow. “While American of Martinsville is a great company and a leader in the hospitality arena, it is not core to our strategy as a residential company.”

American of Martinsville is one of the world’s leading manufacturers and suppliers of contract furnishings to the hospitality, senior living and government markets. The company’s wood furniture, upholstery products, and related accessories can be found in hotels and motels around the world as well as assisted living facilities and government installations.