FAMSA acquires 12 La Canasta stores
Mexico-based chain now has 37 U.S. stores
Clint Engel -- Furniture Today, April 4, 2007
CORONA, Calif. — Monterrey, Mexico-based FAMSA has acquired the 12-store-La Canasta here, further expanding its U.S. presence.
The publicly held credit-oriented retailer bought La Canasta’s operations —including nine California stores and three in the Houston area — for $37 million, said Arturo Prestamo, investor relations director.
The acquisition gives the retailer 37 stores in California, Texas and Nevada. There are plans to open eight more units by the end of the year, including FAMSA’s first store in the Phoenix area, said Prestamo.
All stores target the U.S. Hispanic population. About 12.8% of U.S. sales fall under the retailer’s FAMSA to FAMSA program, in which U.S. consumers buy furniture and other goods to deliver to relatives in Mexico.
Prestamo would not disclose sales projection, but said FAMSA ended last year with 346 stores — including 24 in the United States — and total revenues of about $1.1 billion. The U.S. stores accounted for 14.2% of revenues with furniture, bedding and accessories representing about 60% of sales, he estimated.
That would make FAMSA’s U.S. operations a Top 100 player with furniture, bedding and accessories sales of about $93.7 million and total revenue of $156.2 million.
Going forward, FAMSA plans to open about 10 stores a year in the United States, continuing to target new and existing markets with large Hispanic populations, Prestamo said.
The La Canasta acquisition bolsters FAMSA growth here. “We feel there are a lot of synergies that could add value to our U.S. operations,” Prestamo said, including advertising and logistics savings.
FAMSA also will capitalize on La Canasta’s 25-year-old name and reputation in the United States. The Texas stores will immediately be converted to FAMSA, but the California conversion will be a more gradual process over a few months, he said.
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FAMSA buys retailer La Canasta
Apr 11, 2007
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