Furniture Brands International becomes Heritage Home Group, LLC
Furniture Industry News Update -
Furniture World Magazine
KPS Capital Partners, LP announced the formation of a new company, Heritage Home Group, LLC, that has acquired substantially all of the assets of Furniture Brands International, Inc., a world leader in designing, manufacturing, sourcing and retailing home furnishings. Heritage Home Group acquired the assets free and clear of substantially all liens, claims, encumbrances and interests through an auction conducted as part of a sale process under Section 363 of the United States Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware formally approved the transaction on November 22, 2013.
Heritage Home Group will operate as an independent company with the long-term support of KPS, a private equity investor with more than $6.0 billion of assets under management and a long track record of successfully transforming businesses and creating profitable, growing companies. Heritage Home Group owns an iconic collection of the furniture and design industry's leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.
Heritage Home Group launches as a well-capitalized company, with no legacy obligations and access to the financial resources necessary to execute its ambitious business improvement and growth plans.
KPS also announced that Ira Glazer has been named President and Chief Executive Officer of Heritage Home Group. Mr. Glazer is an executive with three decades of successful turnaround experience and has previously partnered with KPS on a very successful platform.
Raquel Vargas Palmer, a Partner of KPS, said, "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. 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. We are proud to welcome the many Furniture Brands associates who are joining Heritage Home Group, and we look forward to working together to build a thriving and profitable company.
"KPS is delighted that Ira Glazer will serve as President and CEO of Heritage Home Group. Ira is an outstanding business leader with a demonstrated track record of transforming and growing companies. We have worked successfully with Ira in the past and look forward to collaborating again to build the value of Heritage Home Group.
"We are grateful to all of Furniture Brands' stakeholders for their assistance and cooperation through the transaction process and the formation of Heritage Home Group," Ms. Palmer concluded.
Mr. Glazer said, "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. 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.
"I would like to commend Ralph Scozzafava, who informed us this morning that he resigned as CEO of Furniture Brands, for his efforts over the past several years. Ralph worked hard to ensure that Furniture Brands' assets would be well-positioned for growth and we thank him for his contributions," Mr. Glazer concluded.
GE Capital, Corporate Finance and PNC Bank, N.A. provided financing for the transaction.
Proskauer Rose LLP acted as legal counsel to KPS with respect to the transaction.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with over $6.0 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries. The KPS investment strategy is based primarily upon partnering with top management teams and improving the operations of businesses. Thereafter, upon achieving stability and profitability, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of over $7.6 billion, operate 87 manufacturing facilities in 25 countries, and employ approximately 31,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
About Heritage Home Group: Heritage Home Group is a world leader in designing, manufacturing, sourcing and retailing home furnishings. The company markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multiline/independent retailers and mass merchant stores. Heritage Home Group serves its customers through an unparalleled collection of the furniture and design industry's leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge. To learn more about these brands, visit www.thomasville.com, www.broyhillfurniture.com, www.lanefurniture.com, www.drexelheritage.com, www.hickorychair.com, www.henredon.com, www.pearsonco.com, www.laneventure.com, www.maitland-smith.com and www.labargeinc.com.
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