$1B Venture Unites Vegas, HP
Heath E Combs -- Furniture Today, May 27, 2011
International Market Centers CEO Bob Maricich, at the podium, speaks at a press conference in High Point. At right is Tom Mitchell, IMC president of home furnishings.
HIGH POINT - A group of investors backing a new venture emerged last week in a long-awaited $1 billion deal that unites Las Vegas and much of the High Point home furnishings showroom real estate under single ownership and management.
The new owner, International Market Centers L.P., is majority owned by funds managed by Bain Capital Partners and a subsidiary of funds managed by Oaktree Capital Management.
Among the minority owners are the Related Cos. - a longtime investor in the World Market Center in Vegas - Bassett Furniture, with a $2.4 million stake, and Network World Market Center and affiliates, the original WMC founders led by Jack Kashani and Shawn Samson.
When complete, IMC will control 18 buildings and about 11.5 million square feet in the two cities. One of the High Point showroom complexes involved, Showplace, and two of the World Market Center buildings in Las Vegas have been in receivership.
No documents have been filed that indicate the WMC properties in receivership have been sold yet, but IMC officials said the property deals were expected to close within 60 days.
The new owners will control of about 60% of the active showroom space in High Point, as well as the WMC Buildings A, B, and C and the Pavilions tents in Las Vegas.
The High Point showroom spaces, which includes the International Home Furnishings Center, Merchandise Mart Properties and Showplace properties, come at a price tag of about $457.5 million, following court approval last week of the sale of Showplace and four affiliated buildings for $43 million.
The new owners said the properties in its portfolio are recapitalized with significant equity investments, providing for long-term stability.
Bob Maricich, who has led the WMC, was named CEO of International Market Centers with joint headquarters in High Point and Las Vegas. Before becoming president and CEO of the WMC in 2008, he was president and CEO of manufacturer Century Furniture, where he spent 11 years.
Other executives of International Market Centers are:
Tom Mitchell, president of home furnishings. He has been president and CEO of the IHFC since 2008 and has worked in the home furnishings and trade mart business for 32 years.
Georgia Davis, who will lead the new venture's "strategically critical" gift industry initiative on an interim basis while a president of gift and home décor is identified. She has been a consultant to the WMC since 2007 and previously was executive vice president of the Dallas Market Center for 20 years.
Katherine Venezia, chief financial officer. She has overseen financial matters at the WMC since 2004.
Randy Eller, chief integration officer, with responsibility for leading the combination of the acquired companies into an "effective, integrated, worldclass operation." He has worked for more than 30 years in the gift and home sector.
Maricich said the investors expect the home furnishings industry's growth will continue, even though its progress was interrupted by the economic downturn.
"We believe people's love affair with their homes is something that's endured over the ages and will be in the future as strong as it has been in the past," he said.
In a statement, the investors said they want to attract crosscategory business opportunities, grow traffic, enhance marketing and create new distribution and sales channels for exhibitors.
Maricich indicated that the IMC plans to continue opening its showrooms for four furniture markets a year and said there may be opportunities for trade show growth for the company, in markets like South America where Maricich said there is no major furniture show.
The new owners also will aim for growth in the gift and home décor markets, and also plan to have a focus on non-traditional furniture retailers.
He added that the IMC will support the High Point Market Authority and hopes it will continue to pay for services that benefit buyers at market.
"We will be partners with the Market Authority. We want to support what they do," Maricich said.
There are no current plans for further acquisitions, he said.
IMC has set up a website at imcenters.com.
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