Sauder Acquires O’Sullivan Assets

April 16, 2007  by in UnCategorized   

By Home Furnishings Business in on April 2007 Sauder Woodworking Co., Archbold, Oh., North America’s largest manufacturer of ready-to-assemble furniture, announced today that it is acquiring key assets of another RTA major, O’Sullivan Inds. Inc., which temporarily shut down production earlier this month.

Sauder is purchasing all intellectual property, the O’Sullivan name, the Coleman garage license, plus select drawings, patents and raw materials.

“We did not buy the company outright; but after studying O’Sullivan’s business, we acquired selected portions we felt added value to Sauder’s operations and customer relationships,” said Kevin Sauder, president and chief executive officer in an announcement. “Clearly, adding major portions of the customer base and product placements of this $200 million company will significantly expand our sales, increase production at our Archbold facility and grow our market share.”

Sauder expects the acquisition to add around 200 jobs in Archbold. The company plans to run key O’Sullivan items through O’Sullivan’s Lamar, Mo., plant for a few months until Sauder can begin producing those items in its own facilities in Archbold.

“I believe our operation has the capacity and capability to absorb the new business without additional major capital investments,” Sauder continued. “This arrangement will help us retain our position as a world-class domestic producer, while bringing more jobs to Archbold. We expect it to keep us very busy for a long time to come.”

While the O’Sullivan plant will close eventually, Sauder said the operating agreement allows employees another few months of income while seeking other work and keeps product flowing to important retail customers.

The acquisition brings Sauder a significant relationship with Lowe’s and expands the company’s business with Staples, Big Lots, Shopko and Wal-Mart, among other retailers.