Hooker to acquire Opus Design assets
Move will bolster youth bedroom offerings
-- Kids Today, 10/24/2007 1:36:00 PM
MARTINSVILLE, Va. — In a move to bolster its youth bedroom line, Hooker Furniture has signed a letter of intent to purchase the assets of New York-based importer Opus Designs.
The acquisition will allow Hooker to build a strong youth bedroom program at more moderate price points, Paul Toms Jr., the company’s chairman, president and CEO, said in a press release.
Opus is expected to have sales of about $5 to $6 million this year.
James Millner, Opus Designs’ president of design and engineering, who oversees design and product development, would remain with the business, according to Hooker.
Toms said the deal will give Hooker a more comprehensive product line with superior sourcing arrangements than its current SmartKids youth furniture line.
He said the company intends to keep the SmartKids brand and will continue with the products it already has introduced under the name, but will look for a way to meld the line with Opus Designs and may co-brand the goods.
He described Opus as a successful entrepreneurial company, which Hooker can provide with financial backing for growth and can support with enhanced systems, better forecasting, inventory management and quality assurance.
“We’re committed to youth bedroom, having entered the category around the same time Opus began in 2005, but we have struggled to become an important resource,” he said. “As part of our commitment to become more competitive in the category, we looked for an established company with a solid sourcing structure and a broad product line. We believe we have found that, at slightly lower price points, in Opus.”
Because of the more competitive price points at Opus, Hooker could reach a younger customer and a broader demographic income spectrum than its current base, Toms said.
“We believe our organization is well positioned to improve service to their customers and expand sales of their product at retail,” he said.
The deal with Opus is expected to close some time in the fourth quarter. Opus offers 10 groups covering the key style bases in youth bedroom, including cottage, pine, Victorian and transitional. Multiple finishes are offered on some groups.
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Hooker signs letter of intent to buy Opus
Nov 1, 2007
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