Michels marches east with Pilliod buy
By Jeff Linville -- Furniture Today, December 9, 2001
MONROE, Mich. — MONROE, Mich. — La-Z-Boy has sold its Pilliod Furniture division to California-based case goods producer Michels & Co., which plans to use Pilliod to broaden its distribution.
Terms of the deal, which became effective Nov. 30, weren't disclosed.
Pilliod makes promotional case goods, youth and home entertainment furniture, and puts the finishing touches on imports, at a 500,000-square-foot plant in Nichols, S.C.
"It's a mirror of what we do on the West Coast," said Irwin Allen, president of Michels and now president of a new division to be called Pilliod Furniture South Carolina Inc. Michels will retain the Pilliod brand name.
Allen said that while the economy is soft, the climate actually is good for this type of acquisition.
"Pilliod is a good strategic fit for us … and you make decisions for the long run. This was an opportunity to buy a solid business and expand our own distribution," he said.
Allen added that Pilliod makes about 80% of its products domestically and imports 20%. Despite the flood of imports over the past few years, "We can be competitive and not tuck our tails between our legs and run away," he said.
La-Z-Boy said the transaction won't have a "material impact" on the company's financial results in the current quarter.
"The Pilliod product line did not strategically align with our other product lines," said Jerry Kiser, La-Z-Boy president and chief executive officer. "We are glad we were able to find a buyer … where a good strategic fit does exist."
Pilliod traces its origins to 1896. It remained a private company until publicly held Ladd acquired it in February 1994 for $54 million. After acquiring Ladd in January 2000, La-Z-Boy closed two of Pilliod's three plants.
In addition to the Nichols plant, Michels inherited most of Pilliod's management team except for President Butch Simmons, who will remain with La-Z-Boy in a special projects role as needed for the company's case goods divisions.
Pilliod had been based at the Ladd office in Greensboro, N.C., and now will look for other quarters. Allen is checking out sites in Greensboro and nearby High Point.
Michels will keep Pilliod's showrooms in High Point and Tupelo. Michels shows in Tupelo and in San Francisco.
-
Guy Laflamme, south shore chairman
Sep 3, 2011 -
Bush Names Theimer, Garde to Lead Divisions
Aug 25, 2011 -
Excelsior to source from Colombia
May 24, 2010
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
