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Home Casual to acquire Sun Isle USA

Home Casual has reached an agreement to acquire Sun Isle USA, a manufacturer of all-weather wicker.

With estimated revenue of $190 million, Home Casual makes mid- to high-end aluminum, cast aluminum, wood, wrought iron and all-weather wicker furniture.

Headquartered in Fitchburg, Wis., with offices in Birmingham, Ala., Shakopee, Minn., and Hong Kong, Home Casual markets its products worldwide primarily through mass retailers, home centers and warehouse clubs.

Its manufacturing facilities, now totaling more than 4 million square feet, are centered in Hangzhou, China. An additional 2 million square feet dedicated to this acquisition was recently approved. The first phase consisting of 1 million square feet of manufacturing and general offices is under construction and scheduled for completion in April 2007. A 50,000-sq.-ft. showroom dedicated to woven collections and accessories will be completed in January 2007 to support the overall marketing effort.

Sun Isle has supplied all levels of the furniture trade since its beginning in 1995 through its own manufacturing facilities, with contract manufacturers and most recently with license and royalty agreements for its designs, unique yarns and weaves.

Currently, Agio International, Brown Jordan, Tropitone, Home Casual and several European companies feature Sun Isle products and/or yarns for 2007 along with such retailers as Crate & Barrel, Frontgate, Costco, Lowe's, Home Depot, Sam's Club, Target and many more. Revenue for the 2005 season exceeded $60 million.

Home Casual will design, sell and produce the Sun Isle product on a direct basis to its current customer base and will continue to contract manufacture for other markets.

Currently, the Home Casual/Sun Isle product lines feature more than 100 woven collections with an additional 25 theme-oriented collections to debut for the 2008 season. Products will be marketed under the Home Casual, Sun Isle and Weatherware brand names.

A decision on continuing a license/ royalty program has not yet been finalized but it is doubtful, according to Scott Crumrine, a Home Casual principal.

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