Brands will be positioned at the top of the company’s line that now includes Magnussen, SLF and Pulaski
HIGH POINT — In a move aimed at further boosting its position as a go-to case goods resource, Magnussen Home parent Banner House has signed an agreement to purchase the American Drew and Kincaid brands from La-Z-Boy.
When the deal is completed around the middle of May, these brands will add to its product mix that includes Magnussen along with Samuel Lawrence Furniture and Pulaski Furniture, which it acquired from Hooker Furnishings in mid-December.
The company said that employees of both companies will join Banner House, including Tim Annas, a 35-year company veteran who will remain vice president of product development, and Peter Blackwell, a 17-year company veteran who will remain vice president of sales.
Page Wilson, who is senior vice president of the Pulaski and Samuel Lawrence brands, also will oversee these two brands, working directly with both Annas and Blackwell on various growth initiatives.
The company said the two brands will represent the upper part of the Banner House line, starting with SLF and Magnussen at the starting midlevel price points, followed by Pulaski in the middle to upper-middle segment.
Each brand brings a unique aesthetic and mix of materials to the Banner House line. American Drew is known for its line of bedroom, dining and occasional, accents and home office made with fancy-face veneers on traditional, transitional and contemporary forms.
Kincaid is a solid wood line of bedroom, dining and occasional furniture as well as accent furniture that includes accent tables, desks, bookcases and mirrors.
“These acquisitions are uniquely positioning our company when it comes to prices and styles by bringing together established storied brands that resonate with retailers and their customers,” said Nathan Cressman, chief executive officer of Banner House. “We can now offer our customers a real competitive advantage by selecting a variety of products within a broad range of price points and from well-known brands that can be efficiently and effectively delivered to their docks. We are very excited about this opportunity.”
Doug Townsend, president of Banner House, told Home News Now that the purchase gives the company an anchor in the upper-premium case goods realm that will benefit its customers.
“We want to have a wider and larger offering for our retailers,” he said, adding, “This gives us additional scale, and it gives us additional buying power in Asia.”
“There is a lot of consolidation happening in the industry on the retail side of the business and the wholesale side as well,” he added. “So we want to position ourselves to be strong in the marketplace, to offer a broad range of products to customers and to be able to have a shared operating structure for all of these brands so that we can be as cost effective as possible for our retailers.”
Townsend added that Banner House has been able to benefit from industry consolidation, including from publicly traded furniture companies that have wanted to divest of brands that no longer fit their business model.
“Magnussen always had a reputation for quality, design and integrity that has made us a very attractive buyer for brands like this,” he said. “Sellers know how we nurture our brands, people and customers, and they know we will take these brands and continue to invest in their growth. This is a good time for us to be in the market to add brands to our portfolio to give our dealers and their customers more choices.”
Terms of the deal including purchase price were not disclosed. Charlotte, North Carolina-based investment banking firm Stump & Co. initiated the transaction and acted as a financial adviser to La-Z-Boy.
At market, American Drew and Kincaid will continue to show on the ninth floor of the Commerce Wing in the International Home Furnishings Center, while Magnussen, SLF and Pulaski will show in a 91,000-square-foot showroom at 220 Elm.
At the October market, American Drew and Kincaid will join the other Banner House brands at 220 Elm.
Source story on Home News Now https://homenewsnow.com/.../breaking-news-banner-house-to-acquire-kincaid-american-drew.../
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