American Leather, a portfolio company of Capital Partners, has acquired Brookline Furniture, a manufacturer of upholstered furniture that is sold to the hospitality market. American Leather was acquired by Capital Partners in July 2012.
Brookline has been supplying upholstered seating to the hospitality industry for over 30 years. The company manufactures sofas, sleepers, lounge seating, exposed wood chairs, dining and barstools, ergonomic desk chairs, benches and ottomans. The company’s products are used in guest room and lobbies for some of the premier hotels in the country including Hilton, Marriott, Westin, Hampton Inn and Best Western.
The company also sells its products into the restaurant, country club, healthcare and assisted living markets. Brookline is headquartered near Greensboro in Archdale, NC (www.brooklinefurniture.com).
American Leather is a designer and manufacturer of high-end, made-to-order, upholstered furniture sold through the private label, retail, and hospitality channels. In September 2016, American Leather acquired LEE Industries, a manufacturer of high-end furniture based in Conover, NC (www.leeindustries.com). American Leather was founded in 1990 and is headquartered in Dallas (www.americanleather.com).
“Joining forces with Brookline enables us to offer our hospitality customers an even broader product line with more price points to fit our customers’ needs,” said American Leather CEO Bruce Birnbach. “Brookline’s well-run operations and focus on superb customer service lines up well with American Leather and LEE Industries philosophies.”
Capital Partners makes control investments in small and mid-sized family and management-owned companies that have revenues from $20 million to $250 million and EBITDA of $4 million to $25 million. Sectors of interest include manufacturing, value-added distribution, specialty consumer and business services. Capital Partners was founded in 1982 and is headquartered in Norwalk, CT (www.capitalpartners.com).
As with its other investments, Capital Partners structured the initial American Leather transaction and the Brookline transaction primarily with equity and only a moderate level of debt financing in order to provide a strong balance sheet from which to implement its growth plan.
© 2017 Private Equity Professional | December 19, 2017
