Hooker Furnishings Corporation has finalized the sale of Pulaski Furniture and Samuel Lawrence Furniture brands to Magnussen Home Furnishings, Inc. for about $6.1 million.
The transaction signifies a significant step towards enhanced profitability for Hooker Furnishings.
The company is optimistic about future opportunities, including the Margaritaville licensed collection.
Enhanced Profitability
The sale of the furniture brands for $6.1 million will contribute to improved profitability for Hooker Furnishings.
Positive Momentum
The company reported a modest growth in sales and margins in the fiscal third quarter, setting a positive trend for future operations.
Share Repurchase Program
Hooker Furnishings plans to create shareholder value through an opportunistic share repurchase program.
Financial Advisors
Stump & Company acted as the financial advisor, and McGuireWoods LLP as the legal advisor for the sale transaction.
- The completion of the sale transaction at a higher price than estimated indicates a successful negotiation by Hooker Furnishings.
- With the shedding of $4.8 million in showroom lease liabilities, the company has streamlined its financial obligations, enhancing financial flexibility.
The sale of Pulaski Furniture and Samuel Lawrence Furniture demonstrates Hooker Furnishings' strategic focus on enhancing profitability and creating value for shareholders. The company's positive momentum in sales and margins presents a promising outlook for future growth and opportunities.