La-Z-Boy to Acquire La-Z-Boy Furniture Galleries Stores in Seattle Market

MONROE, Mich., March 05, 2020 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB) today announced it intends to acquire the business that operates six independently owned La-Z-Boy Furniture Galleries stores, with approximately $30 million in annual retail volume, and one warehouse in the Seattle, Washington market. The transaction is a result of the planned retirement of independent dealers, Chris and Lisa Washko, who took over the stores in 2011, and the mutually agreed-upon decision that selling the stores to La-Z-Boy Incorporated would be in the best interest of their employees while providing for the greatest stability and continuity of the business. The transaction is expected to close in June and is subject to customary closing conditions. The stores will become part of La-Z-Boy’s Retail segment, which today is composed of 155 stores.

As La-Z-Boy is already recording a portion of the Seattle-based store volume in its wholesale segments, the acquisition of the six stores will contribute approximately $15 million of additional sales annually to the company on a consolidated basis.

Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, “The La-Z-Boy Furniture Galleries network is growing and performing well, with consumers demonstrating a preference to shop in store.  We are thrilled to acquire the successful Seattle stores which have sales 25% higher than average across the Furniture Galleries network. The stores are profitable, will be integrated into our Retail segment, and will be immediately accretive. Additionally, having a dedicated warehouse in the market will provide enhanced distribution capabilities for all the La-Z-Boy companies. As we continue to grow our company-owned store base, we have the opportunity to further leverage the combined margin associated with our integrated retail model, where we earn a profit on both the wholesale and retail sales. Chris and Lisa have been great leaders and friends of La-Z-Boy and we wish them all the best in their well-deserved retirement.”

Chris Washko said, “It has been an honor to be part of the La-Z-Boy organization. Lisa and I have worked with a great team of talented and passionate individuals across our business and we are proud of what we have built and the support the team has given to our local community. Additionally, it has been a distinct pleasure to work with the many executives at La-Z-Boy Incorporated as we have collectively grown our businesses.”