FBI sells contract unit to HNI for $75 million
By Furniture Today Staff -- Furniture Today, March 31, 2008
St. Louis — Furniture Brands International said it has entered into a definitive agreement to sell its Hickory Business Furniture contract unit to HNI Corp. for $75 million.
The all-cash transaction is expected to be completed in the first quarter. Furniture Brands had announced last year that it was looking for a buyer for HBF.
"HBF is an outstanding business, but it does not fit our strategic focus on the residential consumer market," said Furniture Brands CEO Ralph Scozzafava. "HNI is a well-respected company in the office and commercial segment of our industry, and it will be a perfect 'home' for HBF and its talented associates.
"This divestiture will contribute to the steady strengthening of our balance sheet and enable us to focus on our core consumer brands," Scozzafava said. "With the most cash and the least debt since the company recapitalized in 1992, Furniture Brands today is now even better positioned to execute our strategic plan."
