HNI to purchase Furniture Brands subsidiary

MUSCATINE, Iowa HNI, a provider of upholstered materials and other goods for the office, announced today that it has signed an agreement to purchase HBF, a subsidiary of Furniture Brands International. The acquisition is expected to close in two to four weeks, subject to satisfactory completion of closing conditions and regulatory approval. HNI intends to finance the $75 million purchase price with its existing credit facilities. The acquisition is expected to add to earnings.

HBF, led by President Charlie Bell and the current management team, will continue to operate as a focused, stand-alone entity with a unique brand position and strategy.

"We’re excited about HBF joining the HNI family. Its unique premium brand, design heritage, strong designer relationships, and differentiated business model make it a great fit with our existing structure and brand portfolio. We look forward to working with the entire HBF team and leveraging HNI's lean enterprise and overall office furniture expertise to achieve greater efficiencies, customer performance, and profitable growth," said Stan Askren, chairman, president and ceo of HNI.