Markor acquires Schnadig Furniture

Chinese manufacturer expands U.S. footprint

Gary Evans -- Furniture Today, January 8, 2009

URUMQI, China — Chinese manufacturer Markor International Furniture said today it has acquired U.S. upholstery and case goods importer Schnadig Furniture, and has named industry veteran Jeff Young as its chairman and CEO.

Jeff Young

Former chairman and CEO Don Belgrad will become chairman emeritus of Des Plaines, Ill.-based Schnadig.

Markor said the sale was completed Monday, but did not divulge a purchase price. A report on Tradingmarkets.com put the deal's value at $8.94 million.

In a press release, Markor said the transaction demonstrates the company's commitment to the U.S. and international markets. The company had said last year that it was in search of acquisitions.

"Markor believes that by bringing together its manufacturing efficiencies and Schnadig's established marketing channels and brands, we will offer our customers well made products, enhanced service, distinctive design and excellent value," said Richard Feng, Markor chairman and CEO.

The newly merged company will be known as Schnadig International Corp. and will provide Markor with a bigger footprint into the U.S. upholstery market.

Schnadig, which had been a longtime upholstery manufacturer, Schnadig, stopped producing domestically two years ago and began sourcing its product from China. In addition to upholstery, the company also imports case goods.

A year ago, Schnadig was acquired by the Benefit Capital Cos., an investment group headed by Robert W. Smiley.

"Markor has been Schnadig's close and reliable manufacturing partner for many years," Belgrad said in a statement. "I am excited about our two companies combining their respective strengths to become a leading retail supplier. We shared similar values, and I am confident that Markor, under Mr. Feng's leadership, will preserve Schnadig's heritage and expand the strength of the brand."

Young, a former CEO of Lexington Furniture, Drexel Heritage and Furniture Brands International's HDM division, said he was "delighted to be joining forces with Richard Feng, Don Belgrad and their dynamic organizations. I am excited to be part of the management team and we are fully prepared to meet the challenges of the industry. I am confident we will build on Schnadig's tradition and proud history."