HON to buy Klaussner's Paoli
By Furniture Today Staff -- Furniture Today, January 4, 2004
MUSCATINE, Iowa — Office furniture major HON Inds. has agreed to buy Paoli, a small office/home office producer, from Klaussner Furniture Inds. in a cash deal to be completed this month. The purchase price was not disclosed.
Based in Orleans, Ind., Paoli makes wood case goods and seating, primarily for office furniture dealers serving small and midsized businesses. Paoli had been a KFI subsidiary since 1988, increasing annual sales during that time from $22 million to more than $80 million.
Paoli's management, led by President Tom Tolone, will remain in place. The company will continue to market products through its existing independent sales representative and dealer networks.
Klaussner officials said it made sense to pair Paoli with a corporate parent with expertise in office furniture rather than residential. "This is a great fit, and we know the Paoli family will thrive under HON ownership," said J. B. Davis, Klaussner chief executive officer.
Stan Askren, HON president, said, "Paoli management has done an excellent job, growing profitably in a very challenging environment. We look forward to working with Tom and the entire Paoli team."
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