Lexington to Buy Sligh
Leaders say deal will help both brands
Thomas Russell -- Furniture Today, October 11, 2011
Phil Haney, left, and Rob Sligh meet at the Lexington headquarters and showroom in Thomasville, N.C., where Sligh product will be shown during the High Point Market.
THOMASVILLE, N.C. - Lexington Home Brands' planned acquisition of Sligh Furniture will give new and existing customers of both companies an advantage in the marketplace as they shop both lines, according to company leaders.
Lexington offers case goods and upholstery at upper middle to high-end price points. Sligh, founded in 1880, is a leader in upper-end home office and home entertainment, offering goods at similar price points as Lexington.
"One thing that excites us about this is that by putting these companies together, we can offer retailers a different way to come to market and an opportunistic way to grow their business," said Phil Haney, president and CEO of Lexington Home Brands.
At the Oct. 22-27 High Point Market, the Sligh line will be shown in a dedicated space on the second floor of Lexington's 100,000-square-foot showroom at 1300 National Highway in Thomasville, N.C. Previously, Sligh has shown at 310 N. Hamilton in the Hamilton Wrenn district.
Officials did not reveal what Lexington will pay for Sligh, which will retain its name as a brand in Lexington's portfolio. The deal is expected to close before the October market.
Haney said one important part of the deal was the retention of Rob Sligh, who will remain president of Sligh and also will be a senior vice president of business development for Lexington. He will be based at Lexington's headquarters here.
"Rob is the fourth generation of his family to manage the company, and having that continuity to me was really important to us," Haney said.
He added that the purchase will allow Lexington to tap into Sligh's core strengths in home office and home entertainment as well as its knowledge of consumer electronics.
"Consumers seem to be, even in a difficult economy, willing to spend on technology, and so many of the products that Sligh produces relate to those categories," Haney said. "So if we can help the consumer incorporate all this new technology in her home in a very beautiful way and by using cabinetry that is engineered for all these new things, I think that makes a lot of sense."
Rob Sligh said that the deal represents an opportunity for product in his line to be shown with Lexington's upholstery and occasional pieces.
"I have been an admirer of what Phil has done at Lexington, and I think that Lexington is viewed as the hot line today," Sligh said. "Whether it's their case goods or upholstery ... everyone wants to go to Lexington and see what they are doing. From our point of view we are recognized as the high end leader in home entertainment and home office. To be part of a bigger platform is good for Sligh. It will help in creating stronger partnerships with our dealers and will help us reach out in an even more effective way to consumers."
Sligh and Lexington share roughly half the same dealers, giving them ample opportunity to market each line to new accounts, officials said. Sligh will utilize Lexington's 30-plus-member dedicated rep force as opposed to dealing with independent reps who sell multiple lines.
Industry analyst Jerry Epperson of Richmond, Va.-based Mann, Armistead & Epperson said the deal makes sense on a number of levels.
"It makes sense to have a high-end line like Sligh expand and gives Lexington a real opportunity in some new categories like Sligh's great home office," Epperson said, noting that both companies also once had a long heritage as manufacturers before shifting to an all-import model in wood furniture. Lexington continues to have its upholstery produced in North Carolina.
"I am a big fan of Rob and a big fan of Phil," Epperson said. "Phil has worked miracles at Lexington and I think they make a terrific team."
Sligh product will be shipped from Lexington's warehouse and distribution center in Lexington, N.C. Sligh's product development, marketing, customer service and credit functions will move from Holland, Mich., to Lexington's headquarters in Thomasville.
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