Hon acquires Paoli from KFI; no major changes planned
By Tom Edmonds -- Furniture Today, January 25, 2004
Orleans, Ind. — Orleans, Ind.– It will be business as usual at Paoli, even with the new ownership.
After 15 years as a subsidiary of Klaussner Furniture Inds., the residential furniture major, Paoli, a familiar name in the mid-market sector of the SOHO business, was acquired by Hon Inds. for an undisclosed amount.
On the heels of the acquisition announcement, Tom Tolone, Paoli's president, took pains to assure office furniture dealers that Paoli would stay the course.
"We are excited about the purchase and the ability to be with a company that fits with our values, culture and ethics," Tolone said, in an open letter to dealers. "The ability to operate as an autonomous company and to aggressively address the market with the resources of one of the leading companies in our industry strengthens our position as a major supplier for you."
Obviously, joining the Hon stable of companies would seem to be more of a cozy fit for Paoli; at KFI, the company certainly thrived and prospered, growing from $22 million in sales in 1988 to more than $80 million last year, but Hon does have some expertise, and some leverage, that it can share in the office furniture arena.
Paoli makes and markets wood case goods and seating, primarily for office furniture dealers operating in what is known as the mid-market – dealers serving small and mid-size businesses.
The Paoli management team and its network of sales representatives will remain in place. The company will continue to market its products through its existing independent representative sales and dealer networks. "This is a great opportunity to continue to build on Paoli's strong position in the market and excellent selling capabilities while leveraging Hon Industries' lean enterprise practices to achieve greater cost efficiencies and improved customer performance," Tolone said.
According to KFI officials, it just made sense for Paoli to be paired with a corporate parent whose expertise is office furniture rather than residential. JB Davis, chief executive officer, said, "This is a great fit, and we know the Paoli family will thrive under the Hon Industries' ownership. Our 15 years of owning Paoli has been very rewarding. We look forward to seeing Paoli continue to be a leading player in its category."
Stan Askren, president of Hon, said. "Paoli management has done an excellent job in growing profitably in a very challenging environment. We look forward to working with Tom and the entire Paoli team.•
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