Bauhaus, which was founded in 1989 in Saltillo, was acquired by La-Z-Boy for $60 million in 1999.
La-Z-Boy Chairman, President and CEO Kurt Darrow said the company no longer fit into its business model.
From La-Z-Boy’s perspective, with our emphasis on integrated retail, Bauhaus is not a strategic fit from a size perspective in terms of its revenue or earnings and we believe our resources will be further enhanced by narrowing our focus to our core business strategy.”
While terms were not disclosed, La-Z-Boy is selling Bauhaus to an investor group led by Bauhaus President Britt Allred.
Said Darrow: “We are pleased to have the opportunity to sell Bauhaus to an investor group that will provide continuity and seamlessness to all its customers through the transition period to new ownership. I am confident Britt and his team will ensure customers receive the same level of innovation and service from Bauhaus that they have come to expect and we wish the new ownership group and employees all the best going forward.”
The deal should be completed by the end of La-Z-Boy’s fourth quarter, which is in April.
La-Z-Boy’s remaining brands in its upholstery division includes its namesake brand and England. The company also has a case goods division that includes American Drew, Lea, Hammary and Kincaid.