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From Home Furnishing Business

Flexsteel Acknowledges Buyout Offer from Owner of Z Gallerie, DirectBuy

Upholstery and case good major Flexsteel Inds. confirmed that it had received a buyout offer of $20.80 per share from CSC Generation Holdings, the owner of Z Gallerie, DirectBuy, One Kings Lane, and several other brands.

The company described the offer as an “unsolicited, preliminary, non-binding proposal” and said it had no previous interaction with CSC or advance knowledge of its offer. At the end of its last fiscal year June 30, Flexsteel had about 5.5 million outstanding shares of stock, which would make the CSC offer worth approximately $115 million.

Flexsteel’s assertion that it had no previous contact with CSC contradicted multiple media reports that quoted CSC officials as saying they previously made an acquisition proposal but got no response from Flexsteel’s board of directors.

Flexsteel said its board “will carefully review and evaluate the proposal to determine the course of action that it believes is in the best interest of the Company and all of its shareholders.” It also said the company would have no further comment on the proposal until the review is completed.

The offer represented a 22 percent premium above Flexsteel’s closing stock price on Tuesday. By Thursday, the price had jumped to more than $19.50 per share, but shares were still trading well below their 52-week high of $37.74.



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