US-based La-Z-Boy Incorporated has confirmed that it has signed an agreement to acquire the license for the La-Z-Boy brand in the UK and Ireland from Furnico Ltd.
The agreement will be effective from 1 January 2017 with the existing Furnico business outside of the La-Z-Boy license to continue with its normal operations.
Based in Maidenhead, England, La-Z-Boy U.K., Ltd. will be led by Keith Wilson, who until recently was with Calligaris, serving as director for its U.K. and Ireland business. Keith will work closely with Jeff Lillich, the head of La-Z-Boy’s Europe, Middle East and Africa business. A team will be recruited to support the growth of the business and its existing customers.
The Furnico distribution business with La-Z-Boy has generated annual wholesale revenue of around $42m, based on current exchange rates, and with the licensing agreement in place, La-Z-Boy Incorporated already captures approximately half of the sales volume.
La-Z-Boy has also confirmed that it has acquired nine La-Z-Boy Furniture Galleries stores from an independent dealer on 1 November 2016 with annual retail volume of approximately $35m.
Based in the North Eastern Pennsylvania market, with seven in the state, one in Dover, NJ and one in Middletown, NY, the transaction is a result of a planned retirement of the independent dealer and the mutually agreed-upon decision that selling the stores to La-Z-Boy Incorporated would be in the best interest of its employees whilst providing for the greatest stability and continuity of the business.
Kurt L. Darrow, chairman, president and CEO, of La-Z-Boy Incorporated, said: “These two businesses represent approximately $77m in annual sales volume. Because we were already recording a portion of this volume in our wholesale upholstery segment, these two transactions will contribute approximately $41m of incremental sales volume, based on current exchange rates, to consolidated sales on an annual basis.
“While we continue to steadily build the La-Z-Boy brand throughout the U.S. and Canada through our 4-4-5 store growth strategy, we are identifying opportunities to monetize the brand’s value outside North America and expect there to be additional opportunities in other markets in the future.”