Investors acquire WoodMarc
By Clint Engel -- Furniture Today, February 28, 2005
Winterset, Iowa — Homemakers Furniture, part of Berkshire Hathaway's Nebraska Furniture Mart business, has sold its WoodMarc case goods manufacturing subsidiary to an Illinois investment group.
WoodMarc was sold for an undisclosed amount to O'Fallon, Ill.-based Sentinel Acquisitions. Under Sentinel, its stakeholders are Lou Jinright, CEO of the new company doing business as WoodMarc Enterprises; Kasten Group, also of O'Fallon; and Indianapolis-based Centerfield Capital.
Former WoodMarc President Roger Merschman will help with the transition for up to a year while he joins his brothers Dave and Alan Merschman at the Des Moines, Iowa-based Homemakers, where he hinted of brewing expansion plans.
With the deal, Homemakers and Omaha, Neb.-based NFM saw an opportunity to zero in on their strength — retail — while Jinright and the other new owners saw a successful manufacturer with a blended import strategy that they say is well positioned in the wide middle market.
"WoodMarc has proven its ability to generate profit and grow through some of the toughest times the industry has known," Jinright said.
Jinright has held a number of executive and senior management positions, most recently with Fleetwood Enterprises, where he was general manager for the maker and retailer of manufactured housing and producer of recreation vehicles. Before Fleetwood, he held management posts at HON Inds. and Samsonite Furniture.
Omaha, Neb.-based Nebraska Furniture Mart acquired the two-store Homemakers and its WoodMarc subsidiary in 2000, giving it ownership of one of its biggest competitors. Homemakers has 250,000 square feet of showroom space in Des Moines, about 120 miles east of Omaha.
The deal was based on a typical Berkshire acquisition model — leaving the seasoned Merschman family in place and in charge.
NFM and Homemakers will remain WoodMarc customers, Jinright said, but wouldn't disclose how much of WoodMarc's sales they account for.
WoodMarc, which will continue to operate its 260,000-square-foot plant in Winterset, has developed a blended sourcing strategy, augmenting domestic product with imports.
"It allows us to have a broader offering and hit price points for the middle market ... maintain good quality control and very strong customer service," Jinright said.
WoodMarc plans to introduce more home entertainment furniture and all-wood bedroom and dining room groups soon.
At Homemakers, Roger Merschman will focus on operations, while David leads the administrative side and Alan heads marketing and merchandising.
"Were going to increase our operation size in Des Moines, and we need all of our resources," Roger Merschman said, declining to elaborate.
NFM Executive Vice President Bob Batt also declined to detail potential Homemakers changes. "We're talking," Batt said. "We're very happy in the Des Moines market and we're always thinking about how to expand."
The deal allows the retailer to follow its strategic plan and gives WoodMarc's new owners "a great, viable business," he said. "That's the epitome of a good deal."
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