Techcraft acquires Paramount
By Michael J. Knell -- Furniture Today, April 12, 2004
MONTREAL — MONTREAL — Techcraft Mfg., a ready-to-assemble furniture maker and OEM resource here, has acquired Toronto-based Paramount Furniture Mfg., a producer of assembled bedroom and occasional furniture. Terms weren't disclosed.
President Michael Selim said the purchase would enable Techcraft to enter new retail channels and diversify offerings.
"We want to expand our business and sell to furniture stores," he said. "Paramount has excellent relationships with both Canadian and U.S. furniture retailers."
Techcraft has two divisions. One produces OEM goods for consumer electronics manufacturers such as Toshiba, JVC, RCA, Hitachi and Sharp. The other makes private-label RTA furniture, primarily TV stands, for retailers such as Circuit City, Sears and Wal-Mart. About 80% of sales are to U.S. retailers.
In addition to bedroom, Paramount produces entertainment centers, wall units, curio cabinets, computer desks and microwave stands. It showed at the January Toronto market and has exhibited in Tupelo, Miss. About 75% of its volume goes to the United States.
Paramount will operate as a Techcraft division and management will remain, with Manjeet Gill becoming senior vice president and his brother, Bitu Gill, becoming vice president of sales and marketing. Both will report to Selim.
"We expect that combining Techcraft's outstanding design and manufacturing capability with our market knowledge will make us a powerhouse," said Manjeet Gill.
Selim said the acquisition will allow Techcraft to continue to expand its 500,000-square-foot factory in Laval, Quebec. Some of Paramount's manufacturing may be shifted to Laval, he said.
Techcraft was founded in 1974 as the furniture division of Hitachi Canada and was known as Belbois until Selim, its long-time marketing director, acquired the company several years ago.
