Colorado Company Acquires Furniture ManufacturerPosted: Updated:
West Lafayette-based Chromcraft Revington Inc. has been sold to a Colorado company in a nearly $3.5 million deal. Sport-Haley Holdings Inc. Chief Executive Officer Samuel Kidston believes the transaction will increase access to capital. The deal should close later this year. October 1, 2013
WEST LAFAYETTE, Ind. -- Chromcraft Revington, Inc. (OTC Pink Marketplace: CRCV) announced today that, on September 30, 2013, the Company, following approval by its board of directors, entered into an Agreement and Plan of Merger with Sport-Haley Holdings, Inc. (OTC Pink Marketplace: SPOR) for the sale of the Company. Under the terms of the agreement, Sport-Haley will acquire all of the outstanding shares of common stock of Chromcraft for $3.45 million consisting of $2.7 million payable in cash at closing and $0.75 million payable in cash upon the earlier of 180 days following the closing or the sale or satisfactory mortgage of Chromcraft’s plant located in Delphi, Indiana. The total purchase price will equal approximately $.54 per share. The acquisition is subject to the approval of the stockholders of Chromcraft, financing contingencies and certain other conditions provided in the definitive agreement. The acquisition is expected to close in the fourth quarter of 2013. A proxy statement will be sent to the stockholders of Chromcraft. Stockholders are urged to read the proxy statement regarding the merger when it becomes available because it will contain important information.
“The continuing economic downturn in the furniture industry has taken a toll on many manufacturers. We see this merger as a positive step forward for all Chromcraft stakeholders.”
Ronald Butler, Chairman and CEO of Chromcraft Revington, Inc., commented: “The continuing economic downturn in the furniture industry has taken a toll on many manufacturers. We see this merger as a positive step forward for all Chromcraft stakeholders.”
“This transaction represents an exciting new chapter for both Sport-Haley Holdings and Chromcraft Revington,” said Samuel Kidston, Chairman and CEO of Sport-Haley Holdings, Inc. “Existing Chromcraft shareholders receive immediate value for their holdings. While the combination of the two companies will bring increased access to capital, strong operating discipline and an unwavering focus on delivering value to our employees, customers, vendor partners and the shareholders of Sport-Haley Holdings.”
Chromcraft Revington® businesses design, manufacture and import residential and commercial furniture marketed primarily in the U.S. The Company wholesales its residential furniture products under Chromcraft®, Cochrane®, Peters-Revington®, and CR Kids & Beyond® primary brands. It sells commercial furniture under the Chromcraft® and Executive Office Concepts brands. The Company sources furniture from overseas suppliers, with domestic contract specialty facilities, and operates a U.S. manufacturing facility for its commercial furniture and motion based casual dining furniture in Mississippi and a manufacturing facility for office suites and other commercial furniture lines in California.
Organized in 2011, Sport-Haley Holdings, Inc. is a holding company that owns Sport-Haley, Inc. The mandate of Sport-Haley Holdings is: “To increase shareholder value by maximizing intrinsic value per share over the medium- and long-term.” Sport-Haley, Inc. was organized in 1991 and is a leading golf apparel company which designs, purchases, contracts for the manufacture of, and markets women’s fashion apparel and outerwear under the SPORT HALEY®, Bette & Court, and Swing® labels.
SourceL Chromcraft Revington