China's Decca Holdings to acquire Classic Gallery
By Heath E. Combs -- Furniture Today, April 23, 2007
High Point — Decca Holdings, a Hong Kong-based residential and contract furniture maker, is set to acquire the assets of custom upholstery maker Classic Gallery here.
Classic Gallery has done some manufacturing for Decca's contract and hospitality division, and also will make Decca's residential line at its factory in High Point, said current owner Charlie Greene, who will remain president after the acquisition.
Greene, who is chair of the North Carolina Home Furnishings Export Council, said that from both a logistics and quality standpoint, Decca would be better served with contract upholstery made in the United States. Decca's case goods and wood furniture parts manufacturing will remain in China.
The deal is expected to close in May. Terms weren't disclosed. According to Decca's 2006 annual report, the United States was its largest market, accounting for 60% of revenue. The company had revenues of about $62 million in the fiscal year ended in March 2006, primarily from its U.S. hospitality division, the architectural fixtures and projects division, and the Asia custom furniture division.
The report said that during the year, Decca purchased a manufacturing facility on Ward Street in High Point from Bolier & Co., a residential case goods and upholstery company. Decca has showrooms in London and Paris.
Decca's manufacturing facilities in Dongguan cover over 1.2 million square feet and employ more than 2,200 people. Decca makes and installs high-end wooden furniture and architectural fixtures and fittings for luxury hotels, residences, executive offices and stores.
"We have been focusing on improving our production efficiency and minimizing the delivery time of our products to our U.S. customers," said Richard Herbst, president of Decca Furniture USA, in a press release. "We expect to increase the size of the upholstery work force and develop a cost-efficient manufacturing company."
With its purchase of Classic Gallery, Decca is following in the footsteps of Lacquer Craft, a Chinese company that owns Universal and Legacy Classic, and that last year acquired U.S. upholstery maker Craft-master Furniture.
