La-Z-Boy's Kincaid Subsidiary To Acquire Alexvale Furniture

Furniture World Magazine

La-Z-Boy Incorporated, one of the nation's leading manufacturers of residential and business furniture, announced today that it has entered into a letter of intent to acquire privately held Alexvale Furniture, Inc. "The addition of Alexvale to the La-Z-Boy family of companies not only enhances our marketing opportunities, but also creates synergies with our key divisions," said Patrick H. Norton, chairman of the board of La-Z-Boy. "Alexvale is a respected name in our industry and has earned a solid reputation for product styling and quality with which we are proud to be associated." General terms of the transaction call for La-Z-Boy to acquire 100 percent of the outstanding shares of Alexvale from its stockholders. The transaction is subject to negotiation of definitive terms, necessary regulatory approvals, satisfactory due diligence review and final approval by both boards of directors. Gerald L. Kiser, president and chief operating officer of La-Z-Boy said, "Alexvale will operate as a division of La-Z-Boy subsidiary Kincaid Furniture. Alexvale will continue to pursue its growth objectives promoting products under the Alexvale brand." "We could not be more excited about this alliance and are looking forward to assisting Alexvale in continuing their growth while enabling Kincaid to become a full furniture resource," said Steve Kincaid, president of Kincaid Furniture Co. "When you've spent a majority of your life building a reputation for quality and style, you want to make sure you find people who will respect and preserve that reputation down the road," said Charles Bolick, president and co-founder of Alexvale Furniture. "Given La-Z-Boy's impressive track record and its own reputation for quality and integrity, we couldn't have found a better fit." Founded in 1976, Alexvale Furniture, Inc., has built its reputation on style and fashion, targeting medium price points with department stores and home furnishings retailers. The company markets upholstered furnishings under the Alexvale and Hickory-Fry brand names. Alexvale also imports and markets occasional tables and casegoods as part of its product line. Based in Taylorsville, N.C., Alexvale employs 586 workers and operates from four factories, all in the Catawba Valley of North Carolina. The company expects to report annual sales to exceed $60 million in fiscal 1999. Kincaid Furniture Co., Inc. is the world's largest manufacturer of solid wood furniture. Based in Hudson, NC, the company is a subsidiary of Monroe, Mich.-based La-Z-Boy Incorporated. With annual sales in excess of $1.2 billion, La-Z-Boy employs 12,500 people, has 31 manufacturing facilities in the United States, Canada and Europe, and operates seven independent divisions, including La-Z-Boy Residential; La-Z-Boy Business Furniture Group; Hammary Furniture Company; Kincaid Furniture Company; England/Corsair, Inc.; Centurion Furniture PLC and Sam Moore Furniture Industries.