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Lexington recapitalized

Sun Capital had owned Lexington since 2002

HIGH POINT – Case goods and upholstery resource Lexington Home Brands announced today that it has been sold to Shanghai-based home furnishings retailer Luolai lexLifestyle Technology and Shanghai-based private equity firm Yixing Capital in a transaction that closed on Jan. 6. It was sold by Sun Capital Partners, which has been Lexington’s private equity partner for 15 years.

“We’ve enjoyed a long and mutually beneficial relationship with the team at Sun Capital,” said Phil Haney, president and CEO of Lexington Home Brands. “They have been terrific partners, fully supporting the growth and acquisition initiatives that have allowed us to gain market share and expand into complementary lines of business like outdoor living with Tommy Bahama, home office and media solutions with Sligh and decorative accents and custom dining with Artistica. While the relationship has proven an ideal scenario for both parties, private equity investments involve an exit strategy, and the timing was appropriate for us to identify a new financial partner.”

The companies did not reveal further details of the transaction, including a purchase price. However, officials did say that under the new ownership structure, Lexington’s senior management team will remain in place, and day-to-day business operations will remain unchanged.

“We had two very specific objectives in identifying the right business partner,” Haney added. “The first was to ensure a seamless transition for our employees. The second was to ensure continuity of the business for our retail partners. I am pleased that both were accomplished. From a business perspective, this transaction will allow us to accelerate the expansion of our domestic business through aggressive organic growth and acquisitions, while creating significant international growth opportunities through the association with Luolai Lifestyle Technology, an experienced Shanghai-based retailer of home furnishings products, and Yixing Capital, a Shanghai–based private equity firm. The management team and associates at Lexington have proven their ability to both scale the business and expand the company’s assortment across collateral home categories. This transaction will serve to further leverage that competitive advantage.”

Thomas RussellThomas Russell | Associate Editor, Furniture Today
trussell@furnituretoday.com

I'm Tom Russell and have worked at Furniture/Today since August 2003. Since then, I have covered the international side of the business from a logistics and sourcing standpoint. Since then, I also have visited several furniture trade shows and manufacturing plants in Asia, which has helped me gain perspective about the industry in that part of the world. As I continue covering the import side of the business, I look forward to building on that knowledge base through conversations with industry officials and future overseas plant tours. From time to time, I will file news and other industry perspectives online and, as always, welcome your response to these Web postings.

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