From Home Furnishing Business
United Furniture to Buy Lane from Heritage Home Group
United said the purchase includes the global rights to the Lane brand, as well as Lane’s 750,000 square-foot upholstery factory in Belden, Miss., and its 202,000 square-foot recliner mechanism plant in High Point, N.C.
Terms of the transaction, which is expected to close by the end of the year, were not disclosed.
“We are excited about the opportunity to include the Lane brand with our United Furniture and Simmons branded products, and equally excited to have the Lane team join the United Furniture family, said Larry George, president of United.
United has owned the rights to produce upholstery under the Simmons brand since December 2008, and added Simmons case goods to the mix in August 2015.
“We wanted to acquire Lane because it is an American company with values much like ours,” George added. “Their craftsmanship is excellent, and Lane reclining mechanisms set the industry benchmark for quality, durability and ease of use. Our companies are a perfect fit and poised for growth.”
The Belden factory that is part of the acquisition will give United eight factories in Mississippi. Others are in Nettleton, Tupelo, Okolona, Hatley, Sherman, Vardaman and Amory.
In addition, the company has factories in Archdale, High Point, Lexington, and Winston-Salem, N.C., and Victorville, Calif.
United said it plans to retain all current Lane employees, and said the workforce in Belden could double in the coming months.
Heritage Home officials said the transaction will, among other things, provide additional capital to strengthen the company’s balance sheet and fund expansion.
“The sale of the Lane business is an important step in the transformation of HHG,” said Pierre de Villemejane, CEO of HHG. “The transaction will significantly reduce the complexity of our portfolio and sharpen our focus on the growth of our core stable of well-recognized brands, including Broyhill, Thomasville, Henredon, Drexel, Lane Venture and Hickory Chair.”
Lane became a part of Heritage Home Group after Lane’s former parent company, Furniture Brands International, filed for Chapter 11 bankruptcy protection in 2013. Later that year, KPS Capital Partners bought Lane and the other brands in the Furniture Brands portfolio and formed HHG.
The Lane brand dates back to 1912, when John Lane purchased a box factory in Altavista, Va., and later began making cedar chests and other wood furniture. Lane entered the upholstery business in 1972 with its purchase of recliner producer Action Inds.
United Furniture was created in 2000 through the merger of Comfort Furniture, Parkhill Furniture and United Chair Co. Currently, the company has about 3,500 employees.