HIGH POINT — Case goods resource Hooker Furnishings has entered into a definitive agreement to sell case goods resources Pulaski Furniture and Samuel Lawrence Furniture to Magnussen Home Furnishings.

The two companies have been part of Hooker Furnishings’ Home Meridian International (HMI) division since the company purchased HMI in 2016.

The company said that according to the asset purchase agreement the estimated purchase price will be determined and paid at closing based upon the “net book value of the assets being sold in the transaction.” As of Nov. 2, or the end of the company’s fiscal third quarter, the estimated purchase price would be $4.8 million.

The purchase is expected to close in mid-December.

As part of the sale, the company also said it will shed about $4.8 million in Home Meridian showroom lease liabilities and related expenses once Magnussen assumes the lease of the HMI showroom in High Point.

Hooker Furnishings said it will retain the Samuel Lawrence Hospitality brand, part of HMI.

“Today’s announcement is a major step in our multiyear effort to streamline our portfolio and strengthen profitability by sharpening our focus on brands that generate consistent earnings,” said Jeremy Hoff, chief executive of Hooker Furnishings. “We are excited to move forward as a nimbler business with an efficient cost structure and clear growth priorities. We have promising growth opportunities on the horizon following the launch last month of our Margaritaville licensed collection. Together with our remaining portfolio and ongoing cost reductions of over $25 million, we are more confident than ever that we are well-positioned to enhance shareholder value.”