January 6, 2017,
HIGH POINT – Case goods and upholstery resource Lexington Home Brands announced today that it has been sold to Shanghai-based home furnishings retailer Luolai Lifestyle 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.”
“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.”
Related Content By Author
Exclusive Interview with New Pride Family Brands CEO