Hooker Furniture reaches agreement to acquire Shenandoah – Martinsville Bulletin


MARTINSVILLE-Hooker Furniture is growing and not in a small way. Company officials announced on Thursday they had reached an agreement to purchase Shenandoah Furniture for $40 million.

Shenandoah, which is based on Valdese, North Carolina, has a local plant here in Martinsville, as well as plants in Valdese and Mt. Airy, North Carolina. The 36-year-old company specializes in private label furniture such as sectionals, sofas, chairs, ottomans, beds and dining chairs. According to Hooker officials, the agreement includes Hooker taking over all of the assets and some of the liabilities of Shenandoah.

That $40 million purchase price consists of $32 million in case, of which an estimated $12 million is expected to be in the form of additional bank debt and $8 million in newly issued Hooker Furniture common shares, Hooker officials said. Looking at the financial records, Shenandoah earned $8 million in pretax income for the year ending Dec. 31, 2016.

“Shenandoah is a successful, growing, profitable company, focused in a channel of distribution that is winning at retail, in which we are currently under-represented,” said Paul B. Toms Jr., chairman and chief executive officer of Hooker.

He explained that currently, Shenandoah supplies furniture to what people in the industry refer to as the “lifestyle specialty” distribution channel. That means they provide furniture and décor in the upper to medium price markets, both in physical stores and also through online shopping.

“Lifestyle specialty furniture stores are gaining market share and doing well with multiple demographic groups,” Toms said. “For that channel, domestically-produced, customizable upholstery is extremely viable and preferred by the end consumer who shops there.”

Toms said that local employees and customers overall won’t see much of a change. Hooker plans to operate Shenandoah as an autonomous, stand-alone business. Shenandoah’s current president Candace Payne and current executive vice president Phil Payne, will continue to run the company on a day to day basis, Toms said, along with their current management team.

“No changes to Shenandoah’s operations are anticipated,” Toms said. “Our goal is that the acquisition be seamless to customers, employees and suppliers.”

As for the Shenandoah team, officials said they looked forward to being a part of Hooker Furniture.

“We have known the Hooker family and management team for years, since both of our businesses were founded by our families in Martinsville,” Candace Payne said. “We’re excited about partnering with a company with the integrity level of Hooker Furniture. We will continue to operate as a family-run business, just as we are today, knowing we have the full support of the Hooker Furniture team.”

Toms said he expects the acquisition to close in the company’s third fiscal quarter, which ends on Oct. 31. The transaction does not require approval by Hooker’s shareholders. This marks the second acquisition in the last 12 months by the 93-year-old company. In 2016, Hooker acquired Home Meridian International.


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