From Home Furnishing Business
Nova LifeStyle Sells Mainland China Factories to Kuka
Nova LifeStyle, (NVFY) parent company of Diamond Sofa and several other lifestyle brands, has sold its manufacturing operations in mainland China to Kuka Design Ltd., which sells leather upholstery and casual dining in North America under the Kuka Home brand.
Nova LifeStyle officials said the $8.5 million deal, which is expected to close by Oct. 30, will allow the company to focus on product design, marketing and distribution.
"We are pleased to have reached an agreement at a fair valuation for our China-based business, and believe that Kuka Design is the right partner to further grow the business through expanding its production capabilities in China,” said Jeffrey Wong, CEO of Nova LifeStyle.
Wong said the recent slowdown in the Chinese economy, coupled with rising labor costs in the country, led to the decision to exit manufacturing.
“We feel this is truly a win-win for both Kuka Design and Nova LifeStyle, as this transaction will allow our company to focus its entire attention on designing, developing, branding, marketing and distribution of furniture products and the fast growing e-commerce market.”
Nova LifeStyle is based in Los Angeles, but its products are manufactured in Asia. In addition to Diamond Sofa, its furniture and accessories brands include Colorful World, Giorgio Mobili, Nova QwiK, and Bright Swallow International.