Sun Capital affiliate acquires controlling stake in Berkline/BenchCraft
Terms not disclosed; move trades debt for equity, provides new financing for Berkline
By Furniture Today Staff -- Furniture Today, May 11, 2007
BOCA RATON, Fla. — A Sun Capital Partners affiliate has acquired a controlling interest in Berkline/BenchCraft Holdings, parent company of upholstery makers Berkline and BenchCraft.
Terms of the deal were not disclosed.
The transaction is part of a recapitalization, which will also provide for an exchange of about $40 million of outstanding debt for new equity securities, as well as new financing for Berkline.
In the past nine months, Berkline has reduced its cost structure through such initiatives as closing or consolidating operations at four plants, more efficient sourcing and use of offshore operations, rationalizing its product offering, adding key executive management and reducing significant fixed costs.
“We are very pleased to be partnering with Sun Capital and believe that the combination of Sun Capital’s financial resources and extensive operating experience in the furniture industry will support our efforts to refocus on our core competencies and to fund Berkline’s ongoing product innovation and expansion.” said Bill Wittenberg, Berkline/BenchCraft Holdings president and CEO.
“Berkline is an innovator and leader in motion furniture,” said Philip Brown, vice president of Sun Capital. “We look forward to working with Berkline’s management team and its dedicated employees to assist them in building a solid platform for strengthening the company’s brands.”
Imperial Capital LLC and Alvarez & Marsal served as financial and operational advisors to Berkline.
Sun Capital, a private investment firm, has ownership stakes in several other furniture companies, including manufacturers and importers Rowe Furniture, Lexington Home Brands and Powell Co.
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Sun-owned Berkline due funds
May 20, 2007
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