US-based home furniture manufacturer La-Z-Boy is planning to acquire six independently owned La-Z-Boy Furniture Galleries stores.
Financial details of the deal have not been disclosed by the companies.
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The stores were acquired by independent dealers Chris and Lisa Washko in 2011. The transaction follows after the dealers announced their retirement.
La-Z-Boy chairman, president and CEO Kurt L Darrow said: “The La-Z-Boy Furniture Galleries network is growing and performing well, with consumers demonstrating a preference to shop in-store. We are thrilled to acquire the successful Seattle stores, which have sales 25% higher than average across the Furniture Galleries network.
“The stores are profitable, will be integrated into our retail segment, and will be immediately accretive. Additionally, having a dedicated warehouse in the market will provide enhanced distribution capabilities for all the La-Z-Boy companies.
“As we continue to grow our company-owned store base, we have the opportunity to further leverage the combined margin associated with our integrated retail model, where we earn a profit on both the wholesale and retail sales.”
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By GlobalDataCompletion the deal is expected in June, depending on customary closing conditions.
Upon completion of the deal, the acquired stores will be part of La-Z-Boy’s Retail segment, which includes 155 stores.
Chris Washko said: “Lisa and I have worked with a great team of talented and passionate individuals across our business and we are proud of what we have built and the support the team has given to our local community.”
