US-based furniture manufacturer La-Z-Boy is planning to purchase nine furniture retail stores of Arizona La-Z-Boy Furniture Galleries from EBCO for an undisclosed sum.
Of the total nine stores, six are in the Phoenix metropolitan area, two are in Tucson and one in Prescott, Arizona.
Following the acquisition, the nine stores will become part of the La-Z-Boy retail segment, expanding its company-owned store count to 155. The firm currently has a network of 350 stores.
La-Z-Boy chairman, president and chief executive officer Kurt L Darrow said: “We are excited to acquire this thriving business and see great prospects in the Arizona market for La-Z-Boy.
“We are grateful to the Breunig family for their unwavering dedication to our company and store network, and their 35-year commitment to building and developing the most successful independent La-Z-Boy licensee business in North America.
“As strong ambassadors of our brand, they have made meaningful contributions throughout the years to strengthen our store system, while maintaining a focus on providing an excellent customer experience to thousands of clients.”
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The company also expects that the transaction will contribute approximately $40m annually to its sales on a consolidated basis.
The deal, which is scheduled to close in August, is currently subject to customary closing conditions.
EBCO chief executive officer Edward O Breunig said: “La-Z-Boy will have an excellent team of leaders to continue the management of day-to-day operations, headed by Frank Neal, who has served as president for the last five years.
“Frank is a very accomplished retail leader who oversees all functions of the business and is largely responsible for our incredible sales growth.”