CAPITAL PARTNERS ANNOUNCES FORMATION OF
HERITAGE HOME GROUP, LLC
Heritage Home Group Acquires Assets of
Furniture Brands International
Ira Glazer Named President and Chief
New York, NY (November 25, 2013) -- KPS Capital Partners, LP (“KPS”)
today announced the formation of a new company, Heritage Home Group, LLC, that has acquired substantially all of the assets of Furniture Brands
International, Inc., a world leader in designing, manufacturing, sourcing
and retailing home furnishings.
Heritage Home Group acquired the assets free and clear
of substantially all liens, claims, encumbrances and interests through an
auction conducted as part of a sale process under Section 363 of the
United States Bankruptcy Code. The
U.S. Bankruptcy Court for the District of Delaware formally approved the
transaction on November 22, 2013.
Heritage Home Group will operate
as an independent company with the long-term support of KPS, a private
equity investor with more than $6.0 billion of assets under management
and a long track record of successfully transforming businesses and
creating profitable, growing companies.
Heritage Home Group owns an iconic collection of the furniture and
design industry’s leading brands, including Thomasville, Broyhill, Lane, Drexel Heritage, Hickory Chair,
Henredon, Pearson, Lane Venture, Maitland-Smith and LaBarge.
Heritage Home Group launches as
a well-capitalized company, with no legacy obligations and access to the
financial resources necessary to execute its ambitious business
improvement and growth plans.
also announced that Ira Glazer has been named President and Chief
Executive Officer of Heritage Home Group.
Mr. Glazer is an executive with three decades of successful
turnaround experience and has previously partnered with KPS on a very
Vargas Palmer, a Partner of KPS, said, “This is the beginning of a new
era for Heritage Home Group and its brands. The company has a new owner, a new CEO,
a new Board of Directors and a new strategic direction. Heritage Home Group launches with truly
iconic brands, a solid financial structure and access to KPS’ financial
resources and expertise. We
strongly believe in the fundamental value of this business and the
significant growth potential that can be unlocked through focused
investment in our brands. We are
proud to welcome the many Furniture Brands associates who are joining
Heritage Home Group, and we look forward to working together to build a
thriving and profitable company.
is delighted that Ira Glazer will serve as President and CEO of Heritage
Home Group. Ira is an outstanding
business leader with a demonstrated track record of transforming and
growing companies. We have worked
successfully with Ira in the past and look forward to collaborating again
to build the value of Heritage Home Group.
are grateful to all of Furniture Brands’ stakeholders for their
assistance and cooperation through the transaction process and the
formation of Heritage Home Group,” Ms. Palmer concluded.
Glazer said, “I am honored to lead Heritage Home Group. Free of Furniture Brands’ burdens and
liabilities, and with a rock-solid balance sheet and many outstanding
associates who are joining our company, we have an exceptional
opportunity to build a true industry leader. I am also pleased to partner and collaborate
again with KPS, a firm that has distinguished itself as a global leader
in turnaround investing and is ideally suited for this exciting venture.
“I would like to commend Ralph Scozzafava, who
informed us this morning that he resigned as CEO of Furniture Brands, for
his efforts over the past several years.
Ralph worked hard to ensure that Furniture Brands’ assets would be
well-positioned for growth and we thank him for his contributions,” Mr.
GE Capital, Corporate Finance and PNC Bank,
financing for the transaction.
Proskauer Rose LLP acted as
legal counsel to KPS with respect to the transaction.
About KPS Capital Partners, LP
is the manager of the KPS Special Situations Funds, a family of investment
funds with over $6.0 billion of assets under management. KPS seeks
to realize significant capital appreciation by making controlling equity
investments in companies across a diverse range of manufacturing
industries. The KPS investment strategy is based primarily upon
partnering with top management teams and improving the operations of
businesses. Thereafter, upon achieving stability and profitability,
KPS focuses on growing its businesses, both organically and through
strategic acquisitions. KPS portfolio companies have aggregate
annual revenues of over $7.6 billion, operate 87 manufacturing facilities
in 25 countries, and employ approximately 31,000 associates, directly and
through joint ventures worldwide. The KPS investment strategy and
portfolio companies are described in detail at www.kpsfund.com.
About Heritage Home Group
Heritage Home Group is a world leader in
designing, manufacturing, sourcing and retailing home furnishings. The company markets products through a
wide range of channels, including company owned Thomasville retail stores
and through interior designers, multiline/independent retailers and mass
merchant stores. Heritage Home
Group serves its customers through an unparalleled collection of the
furniture and design industry’s leading brands, including Thomasville,
Broyhill, Lane, Drexel Heritage, Hickory Chair, Henredon, Pearson, Lane
Venture, Maitland-Smith and LaBarge.
To learn more about these exciting brands, visit our Web sites: www.thomasville.com, www.broyhillfurniture.com,
www.hickorychair.com, www.henredon.com, www.pearsonco.com, www.laneventure.com,