Best Buy agrees to buy Pacific Sales
Retailer's founder will retire when deal closes
By Furniture Today Staff -- Furniture Today, January 1, 2006
Minneapolis — Consumer electronics giant Best Buy has agreed to acquire Pacific Sales Kitchen and Bath Centers, a Southern California retailer that specializes in appliances and electronics but also sells some furniture.
Privately held Pacific Sales will have sales this year of about $320 million at its 14 stores, according to Best Buy. An estimate of its furniture sales wasn't immediately available.
Pacific Sales lists home furnishings as a category for sale at only one of its stores, in Cerritos, but sells home entertainment products, including some furniture, at several other stores as well. In home furnishings, the company says it offers a full line of case goods, upholstery and occasional products from a range of midpriced to high-end suppliers.
Best Buy said it has agreed to purchase the company for $410 million, subject to closing adjustments, which will be offset by tax benefits worth an estimated $105 million.
Pacific Sales will operate as a wholly owned, indirect subsidiary, Best Buy said. Best Buy veteran Phil Lee, now senior vice president of Magnolia Audio Video, will head the Pacific Sales management team.
Jerry Turpanjian, Pacific Sales founder, president and CEO, plans to retire when the deal closes and will serve as a consultant. Other top managers will remain.
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Best Buy to acquire Pacific Sales
Dec 27, 2005
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