Haloto acquire 50% stake in G&J Styles
Deal will give Halo more access to U.S. market
Thomas Russell -- Furniture Today, July 16, 2008
ARCHDALE, N.C. — Halo, a Hong Kong-based manufacturer of leather upholstery and occasional and dining room furniture, plans to acquire a 50% ownership stake in U.S. antique reproduction specialist G&J Styles.
Officials did not disclose the purchase price or other details about the transaction, which is expected to be completed at this month’s Las Vegas Market. After the purchase, husband and wife team Glyn and Jill Styles will retain a 50% ownership stake in G&J, which is based here.
Richard Jordan, G&J Styles chief operating officer, said the deal will give G&J access to Halo’s 450,000 square feet of manufacturing space in southern China. It also will give Halo dedicated distribution to the U.S. market through G&J’s 61,000-square-foot warehouse and distribution facilities here.
Halo also will have access to G&J’s full line of furniture and designs and will be able to sell those pieces around the world. G&J in turn, will have access to Halo’s designs for sale in the United States.
Halo was formed in 2004 as a wholesale division of the Halo Group, which has sold furniture in the United Kingdom since 1975. Today, Halo says it employs more than 2,000 workers and expects about $35 million in revenues in 2008.
G&J is a 26-year-old company that started as a British manufacturer, then moved its production to China in 2000. It relocated its import business to North Carolina in 2001 and today shows in Atlanta, High Point, Toronto and Las Vegas.
G&J expects revenues of about $12 million in 2008, which Halo expects to double in the next few years, according to Jordan.
Principals from both companies have known each other for about 15 years, and G&J has had a sourcing relationship with Halo for about two years, Jordan said. Today, G&J primarily sources Halo’s leather upholstery and some occasional pieces, including barstools and trunks.
It may source more of the company’s living room and dining room pieces in the future, but only in instances where it makes sense for U.S. customers, he said.
“The designs they do over there will be available to us,” Jordan said, noting that Halo sells much of its furniture in Europe,the Middle East and Australia. “We will take the product we think we can sell in the U.S. — some of the styling is different. Not every product they do is suitable in the U.S.”
Jordan said the two companies began discussions early this year and began to formalize their talks at the April market.
“In this sort of economic climate, we were looking for a bit of security, and they wanted dedicated distribution in the U.S.,” Jordan said. “They understand how important the U.S. market is and want to put some real effort into the U.S.”
For now, Jordan said, Halo will continue to serve as an OEM supplier for other existing U.S. accounts, but likely will not seek out new business in that area. Instead, G&J will supply new U.S. customers interested in the Halo product.
At Las Vegas, G&J is showing in space B-1066. The 150 SKUs on display will include some of Halo’s designs.
The companies also will show together in Shanghai in September. There, G&J will display 20 of its SKUs in the Halo booth.
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