Private group acquires Calif. wood factory
By Powell Slaughter -- Furniture Today, January 11, 2004
ANAHEIM, Calif. — Orange Galleon Corp., a private investment group, has acquired case goods maker Mastercraft Furniture International here for an undisclosed amount.
The group said it is looking to make further acquisitions in the furniture industry.
Mastercraft, which has focused on pine and oak bedroom, entertainment and occasional furniture, continues to manufacture in a 12,000-square-foot facility in Anaheim. The company has about 150 retail customers, mostly in California.
Jonah Jimenez, president of Orange Galleon, now is president of Mastercraft. None of Mastercraft's previous management remains with the company.
The company currently has annual revenues in the $1 million range, and Jimenez would like to at least double that in the next two years.
"Mastercraft has made a name for itself by supplying innovative products with short lead times," he said. "This formula has proven successful in competing with imported products. We intend to build upon this approach and look for ways to provide even more value to our customers."
The company aims to reduce lead times from one to two weeks to under a week, and will broaden materials and styles in order to target higher price points. For example, a three-piece entertainment center typically retails from $1,000 to $1,500. Jimenez would like to extend that to around $2,500.
New materials will include acrylic and possibly carbon fiber.
"My business partner, Aaron Thomas, comes from the plastics fabrication industry, and does a lot of the design work now, so he'll have some interesting pieces in acrylic," Jimenez said, noting that California and the Southwest are important regions for acrylic furniture.
The interest in carbon fiber comes from Jimenez's background in mechanical engineering. He has a master's degree in business and has spent most of his career in the plastics and aerospace industries in sales and marketing, and in general management posts in the United States and Europe.
Mastercraft will look to woods such as alder and birch to broaden business, and Orange Galleon will be on the lookout for other acquisitions, either in case goods or upholstery.
"That will be driven largely by what our customers tell us they want," Jimenez said.
Mastercraft currently doesn't show at a furniture market, and Jimenez wants to get more new product in place before committing to a space. "I'll be going up myself to (scout out) the San Francisco market," he said.
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