Daily News

From Home Furnishing Business

Kluft, Vi-Spring to Merge North American Operations

July 8, 2013  by Home Furnishing Business in Business Strategy, Industry   

 The move gives Vi-Spring, a wholly owned subsidiary of Flex Group  of Spain, a strengthened presence in North America. Earl Kluft , founder and chief executive officer of E.S. Kluft & Co., which manufactures luxury mattresses under the Kluft and Aireloom brands, will be CEO of the combined North American company and has signed a long-term contract to remain in that role. Vi-Spring and Kluft will continue selling and marketing the brands separately with unique product portfolios.

The deal will strengthen Kluft’s leadership in the U.S. luxury segment and enhance its international presence by leveraging the existing retailer network of Vi-Spring, which has operations in Europe, Asia and North America, and its parent company, the Flex Group of Madrid, Spain, which has a strong presence in Southern Europe and Latin America.

All employees of both companies in North America will be retained, including Kluft’s U.S. President of Sales David Binke and Senior Vice President of Operations Ron Bruneau' and Vi-Spring North America Director Terence Bachor, who will remain in his role managing Vi-Spring in the United States and Canada. All will report to Earl Kluft.

“For many years I have admired English luxury beds, particularly Vi-Spring, that I believe really has no peers when it comes to their excellent quality and craftsmanship,” said Kluft. "I see this as an opportunity for both of us to grow our brands worldwide. Combined, we now will be able to claim both Bloomingdale’s and Harrod’s as our company’s flagship stores. The transaction will enable us to have a much wider range of exciting luxury products and additional options in our combined portfolio for retailers and consumers in the North American market. This will absolutely facilitate far greater international expansion."

“We have known Earl for many years and respect the quality and high standards that he has brought to our industry. Together, we shall make an exciting team. For Vi-Spring and the Flex Group, this is a strategic move as we will accelerate our growth in the American market with the help of a very reputable U.S. company and compete internationally with a great portfolio of luxury brands,” said Vi-Spring Managing Director Mike Meehan . “Integrating the North American operations will generate significant operational savings in back office and logistics, yet offer retailers and consumers the widest and most differentiated range of prestigious luxury beds.”