Family-owned Ashley Furniture Industries Inc. of Arcadia, Wis., is working with Goldman Sachs to explore options, including a sale of the company,
the
Wall Street Journal
reported.
The process, which is in the early stages, may not culminate in the sale of the business, the report noted.
“A number of big private-equity firms are weighing a buyout of Ashley,” the article said, citing unnamed sources.
Ashley, founded in 1970, makes affordable pieces and is one of the world’s largest furniture manufacturers, employing about 13,000 people, the
Journal
report said. Last year it generated about $4 billion in revenues. The company could be sold for more than $4 billion, including debt, according to the report.
The family of founder Ron Wanek, whom the
Journal
called “one of the U.S.’s lowest-profile billionaires,” controls the company. The family of Chuck Vogel owns 14% of the company, the article said. Vogel, who was Wanek’s first employee, is a member of the company’s board.
Citing an interview from earlier this year with CEO Todd Wanek, the founder’s son, the
Journal
said the company’s goal is to increase revenue by 7% to 10% each year, more than twice the rate of its industry peers. The company is planning to expand from 35 stores in Asia to 1,000 in ten years and is also opening stores in the Middle East and Central America, the article said. (Source:
Wall Street Journal
, June 2, 2015.)
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