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Get Ready To Say Goodby To Furniture Brands

April 14, 2008

Reuters writes that

Furniture Brands International (FBN.N: Quote, Profile, Research) which faces a proxy fight with private equity firm Sun Capital, would consider a buyout offer that it deems fair in light of its efforts to turn around the manufacturer, an executive said on Friday.

Furniture Brands Intl. (FBN) is one of the nation’s leading designers, manufacturers and retailers of home furnishings. With annual sales in excess of $2 billion, Furniture Brands Intl. produces, sources, and markets products under six well-known brand names: Broyhill, Lane, Thomasville, Henredon, Drexel Heritage and Maitland-Smith.

I believe that FBN was in play starting in February when Sun Capital made an unsolicited offer for the company.  |I wrote then in The Landfair Retail Focus :

At $10.34, the shares were selling at a 60% discount to book value and 30% of sales.  Sun Capital probably thought it doesn’t get much worse for the industry.  They may have thought that with a couple other interested buyers lurking in the weeds, now was the time to make their own intentions known.

FBN is currently trading at $13.22.  It has not backed off since Sun Capital made its interest known.

Thoughts?  Email them to me at landfair3554@comcast.net  

Posted by Mike Landfair on April 14, 2008 | Comments (0)