Sun Capital Discloses Stake In Furniture Brands

March 4, 2007  by in UnCategorized   

By Home Furnishings Business in on March 2007 Shares of Furniture Brands International, St. Louis, were up sharply Friday on the news that affiliates of Sun Capital Partners, Boca Raton, Fla., have acquired more than 2.43 million FBI shares—or approximately 5 percent of the company’s outstanding shares.

Share prices jumped 12 percent to $17.67 after Sun Capital disclosed that funds it controls had been buying up shares since Jan. 10 at prices as low as $15.63. In a Securities and Exchange Commission filing Thursday, Sun Capital officials said the purchases were for investment purposes and said it is seeking to “optimize the value of its investments.” In the required filing, Sun Capital officials said the firm may consider a wide range of other actions for FBI, ranging from acquiring additional stock to a merger offer. The officials also said Sun Capital may seek to have discussions with FBI’s management.

The $1.96 gain in FBI’s share price Friday was the largest increase in more than a year. In January, Sun Capital acquired Rowe as part of a bankruptcy sale. The company also acquired Powell in January, and it has ownership interests in Lexington Home Brands and Nationwide Furniture & Mattress Warehouse. Sun Capital sold its majority stake in Mattress Firm during January to a Boston-based equity firm, J.W. Childs. Sun Capital had acquired the bedding retailer in 2002.