KPS Capital Partners has formed Heritage Home Group and completed the acquisition of substantially all of the assets of Furniture Brands International, a designer, manufacturer, and retailer of home furnishings. Heritage Home Group acquired the assets as part of a sale process under Section 363 of the United States Bankruptcy Code.
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).
With the closing of the acquisition, KPS has named Ira Glazer as President and Chief Executive Officer of Heritage Home Group.
“This is the beginning of a new era for Heritage Home Group and its brands. The company has a new owner, a new CEO, a new Board of Directors and a new strategic direction,” said Raquel Vargas Palmer, a Partner of KPS. “Heritage Home Group launches with truly iconic brands, a solid financial structure and access to KPS’ financial resources and expertise. We strongly believe in the fundamental value of this business and the significant growth potential that can be unlocked through focused investment in our brands.”
Mr. Glazer is an executive with three decades of successful turnaround experience. He is the former president and CEO of Kansas City-based WireCo World Group, a wire rope company, which was acquired by KPS in 2002 and sold to Fox Paine & Company in 2007.
“I am honored to lead Heritage Home Group. Free of Furniture Brands’ burdens and liabilities, and with a rock-solid balance sheet and many outstanding associates who are joining our company, we have an exceptional opportunity to build a true industry leader,” said Mr. Glazer. “I am also pleased to partner and collaborate again with KPS, a firm that has distinguished itself as a global leader in turnaround investing and is ideally suited for this exciting venture.
GE Capital and PNC Bank provided financing for the transaction. Proskauer Rose acted as legal counsel to KPS.
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 87 manufacturing plants in 25 countries, and employ over 31,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-26-13