From Home Furnishing Business
La-Z-Boy to Acquire Joybird, E-commerce Furniture Retailer and Manufacturer
La-Z-Boy (NYSE: LZB) announced it is set to acquire Joybird, an e-commerce retailer and manufacturer of upholstered furniture.
Joybird, the trade name of Stitch Industries, is headquarterd in Commerce, Calif. with manufacturing operations in Tijuana, Mexico. Privately owned and established in 2014 by Alex Del Toro, Andres Hinostroza, Joshua Stellin and Christopher Stormer, the company manufactures custom, mid-century modern upholstered furniture, and has experienced rapid growth, with annual revenue last year of approximately $55 million.
The co-founders will continue to lead and grow Joybird, with responsibility for sales, customer service, marketing and brand development as well as the overall operation of the business. Operations will be supported by La-Z-Boy supply chain capabilities, which include procurement and manufacturing.
“The Joybird team has created an incredible brand and online shopping platform and this combination provides great synergies for both companies,” said Kurt L. Darrow, chairman, president, and CEO of La-Z-Boy.
“For La-Z-Boy, it will allow us to better reach millennial and Gen X consumers, leverage our supply chain assets and provide us with a greater presence online. For Joybird, the speed of its growth has been constrained by limited capital and production capacity. When we combine our world-class supply chain with Joybird’s current manufacturing capabilities, it will be able to accelerate expansion and better service its customers, by improving production speed and shortening delivery times, while lowering costs. It is truly a complementary scenario and we look forward to this exciting extension of our business,” Darrow added.
“Joining forces with La-Z-Boy will be a strategic game changer for our company as it will provide access to resources and additional capacity. We started Joybird with small investments from family and friends and enjoyed rapid growth over the past four years. However, to expand our business further, we need the additional capabilities that La-Z-Boy is providing, including its amazing supply chain with nationwide delivery capabilities. Joining La-Z-Boy provides us with the ability to become the leading online destination for unique, modern and contemporary furniture,” said Christopher Stormer, co-founder of Joybird.
Darrow concluded, “Last summer, we unveiled a multifaceted e-commerce strategy and the acquisition of Joybird is a core element of our plan. Joybird is one of the premier players in the upholstered furniture e-commerce space and we believe it will provide long-term value to La-Z-Boy and our shareholders.”
Terms of the deal were not disclosed and it is subject to customary closing conditions. La-Z-Boy will supply financial information relating to the transaction when it reports its fiscal 2019 first-quarter results in August.