Sauder Woodworking To Acquire Progressive Furniture, Inc.

Furniture World Magazine

Sauder Woodworking Co., North America’s largest manufacturer of ready-to-assemble (RTA) furnishings, has announced plans to purchase Progressive Furniture Inc., a rapidly growing manufacturer of traditional solid wood, veneered and laminate furniture. The companies expect the transaction to be finalized by the end of June. Though financial terms of the planned acquisition were not disclosed, Progressive will operate as an independent subsidiary, retaining its current management, employee force and operations. A highly respected, privately held manufacturer of wood bedroom, dining room, occasional and entertainment furniture, Progressive has expanded sales from $47 million in 1995 to $125 million in 2000. Headquartered in Swanton, Ohio, the company has a manufacturing facility in Claremont, NC, and imports furniture from contract factories in Mexico, Indonesia and China. "This acquisition is a strategic initiative that allows us to expand our product offerings and distribution channels, and also to respond to new and emerging markets," explained Kevin Sauder, president and CEO of Sauder. "Progressive has experienced strong market acceptance in recent years because of the product’s exceptional value, its quality materials and craftsmanship, and its styling. The company’s expertise in the import arena also will be valuable as Sauder continues to source materials and components for our RTA products." The Progressive acquisition will expand Sauder’s distribution channels by adding a greater number of mid-priced retailers to its customer mix. Major dealers for Progressive include Value City Furniture, Haverty’s, Rooms To Go, Rent-A-Center and Art Van. Progressive’s domestically produced wood veneer and laminate bedroom and entertainment furniture retails from $499 to $799. Under the Woodlands Designs brand, the company imports bedroom, dining room, occasional and entertainment furniture from Mexico, China and Indonesia. The line features finely crafted solid wood and inlaid veneer products at affordable prices. Designed to emulate more highly priced furniture, the pieces offer excellent margins due to the company’s merchandising approach. Prices range from $1,499 to $3,499. The Progressive lines will continue to be sold under existing brands by their current sales force. "Our product lines complement one another and our corporate cultures are compatible," Peter Pilliod, chairman of Progressive said. "In addition, many synergies exist between our two operations. Our merchandising strength and import expertise will be important assets to Sauder, while their financial resources and marketing acumen will help Progressive continue its rapid pace of growth and product development." "Through the years, we have sought opportunities to develop better ways of providing value-based furniture solutions to the world," Sauder added. "The combination of our strengths will help us succeed in an increasingly competitive global marketplace." Based in Archbold, Ohio, Sauder Woodworking currently employs 3,500 people. The company operates a distribution facility in Salt Lake City, Utah, but all RTA manufacturing is located in Archbold. Company subsidiaries include Archbold Container and Sauder Manufacturing, the nation’s largest manufacturer of church seating. Total company revenues for 2000 were $575 million. Combined sales for Sauder and Progressive will exceed $700 million.