KPS Capital Acquires Furniture Brands International
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KPS Capital Acquires Furniture Brands International

furniture brands nfKPS Capital Partners has entered into an asset purchase agreement with Furniture Brands International under which KPS will acquire substantially all of the assets of the company, including the company’s Lane business, for $280 million. 

The acquisition agreement was designated by the United States Bankruptcy Court for the District of Delaware as the lead bid in a Court-supervised sale process under Section 363 of the Bankruptcy Code.  Furniture Brands filed voluntary petitions under Chapter 11 of the Bankruptcy Code on September 9, 2013.

KPS, through an affiliate, has also agreed to provide Furniture Brands with a $190 million Debtor-in-Possession financing facility to support its operations.

“We are pleased to reach this agreement to acquire substantially all of the assets of Furniture Brands.  We believe there is exceptional value in the Furniture Brands businesses that can be realized through considerable operational improvements and focused investments behind all of the company’s brands,” said Raquel Vargas Palmer, a Partner of KPS. 

Furniture Brands International (OTC: FBNIQ) is a home furnishings company with brands that include Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Hickory Chair, Pearson, Laneventure, and Maitland-Smith.  The company’s products are sold through a range of channels, including the company’s own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. The company was founded in 1911 and is based in Clayton, MO (www.furniturebrands.com).

“KPS provides us the financial flexibility and operational expertise to emerge from this process a strong standalone business positioned for future growth.  We look forward to working with the KPS team to return our business to leadership positions in our targeted markets for the benefit of our employees, customers, suppliers and business partners,” said Ralph Scozzafava, Chairman of the Board and CEO of Furniture Brands.

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $7.6 billion, operate 88 manufacturing plants in 25 countries, and employ over 31,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
Proskauer Rose is acting as legal counsel to KPS on this transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-4-13

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