Chinese furniture producer to acquire HTL International

Chinese furniture producer to acquire HTL International

Guangdong Yihua Timber hopes to complete deal by summer

Thomas Russell — Furniture Today, December 11, 2015

 

FONTANA, Calif. – Guangdong Yihua Timber Inds., a major Chinese manufacturer of case goods, upholstery and wood flooring, announced it has agreed to acquire leather upholstery manufacturer HTL International Holdings.

Officials did not reveal specifics about the deal, including the proposed purchase price.

However, in buying the publically traded HTL, Yihua would acquire a leading leather upholstery producer that had worldwide sales of $500.6 million in 2014, including $101.9 million in North America. HTL has more than 6,000 employees and eight manufacturing plants in China and one assembly plant in Europe.

Yihua has estimated annual sales of $650 million. In North America, the product line is sold through New Classic Home Furnishings.

On Oct. 27, Singapore-based HTL announced that controlling shareholder BEM Holdings Pte. Ltd. entered into a memorandum of understanding with Yihua relating to a possible acquisition of the company. The two companies then signed a framework agreement on Nov. 18.

Under this agreement, it said, Yihua would acquire all the shares of the company through its wholly owned subsidiary, Ideal Homes Ltd. which is incorporated in Hong Kong. Once the purchase is completed sometime next summer, Yihua would delist HTL from the Singapore stock exchange.

In its communication to shareholders, HTL said the purchase price is subject to negotiations based on due diligence carried out by Yihua. The acquisition is also subject to approval of all shareholders of both companies as well as approval of various Singapore and Chinese regulatory authorities.

The companies did not disclose any other terms of the agreement. Yihua officials did say HTL will continue to operate under its own name and that there are no major changes in management, marketing or product line for the foreseeable future.

Yihua manufactures and distributes youth and master bedroom, dining, occasional, entertainment, upholstery and wood flooring to customers around the world. In addition to the wood line, New Classic, sells a line of fabric and leather upholstery.

Rob Hoffman, president of sales for New Classic, said that that New Classic will work with HTL designers to develop products exclusive for its customer base and sold through New Classic’s container and warehouse programs.

He said these products will be rolled out at the summer and fall 2016 markets, at the earliest, and added that specific price points will be determined in cooperation with New Classic and HTL management.

Chinese furniture producer to acquire HTL International

News editor Larry Thomas contributed to this story.

 

 

 

 

 

Source:

http://www.furnituretoday.com/article/526574-new-classic-paren

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