Sauder Woodworking to Acquire Progressive Furniture Inc.

Apr 05, 2001, 01:00 ET from Sauder Woodworking Co.

    ARCHBOLD, Ohio, April 5 /PRNewswire/ -- Sauder Woodworking Co., North
 America's largest manufacturer of ready-to-assemble (RTA) furnishings, has
 announced plans to purchase Progressive Furniture Inc., a rapidly growing
 manufacturer of traditional solid wood, veneered and laminate furniture.
     The companies expect the transaction to be finalized by the end of June.
 Though financial terms of the planned acquisition were not disclosed,
 Progressive will operate as an independent subsidiary, retaining its current
 management, employee force and operations.
     A highly respected, privately held manufacturer of wood bedroom, dining
 room, occasional and entertainment furniture, Progressive has expanded sales
 from $47 million in 1995 to $125 million in 2000.  Headquartered in Swanton,
 Ohio, the company has a manufacturing facility in Claremont, NC, and imports
 furniture from contract factories in Mexico, Indonesia and China.
     "This acquisition is a strategic initiative that allows us to expand our
 product offerings and distribution channels, and also to respond to new and
 emerging markets," explained Kevin Sauder, president and CEO of Sauder.
 "Adding the resources of an expert case goods producer and importer to our
 successful RTA business is a logical next step for a company our size.  In
 short, it strengthens our position as a world-class manufacturer and
 marketer."
     Progressive has experienced excellent market acceptance in recent years
 because of the product's value, its quality materials and craftsmanship, and
 its customer-oriented styling, Sauder continued.  The company's products
 complement, yet in no way duplicate, Sauder's RTA offering.  Both lines will
 continue to be sold under existing brands by their current sales forces.
     The acquisition will expand Sauder's distribution channels by adding a
 greater number of mid-priced retailers to its customer mix.  Progressive's
 expertise in the import arena also will be valuable as Sauder continues to
 source materials and components for RTA products.
     "Our product lines complement one another and our corporate cultures are
 compatible," Peter Pilliod, chairman of Progressive said.  "In addition, many
 synergies exist between our two operations.  The added strength of Sauder's
 financial resources and its marketing acumen will help Progressive continue
 its rapid pace of growth and product development."
     Progressive's domestically produced wood veneer and laminate bedroom and
 entertainment furniture retails in the promotional price range.  Under the
 Woodlands Designs brand, the company imports bedroom, dining room, occasional
 and entertainment furniture from Mexico, China and Indonesia.  The line
 features finely crafted solid wood and inlaid veneer products at affordable
 mid-range prices.
     Headquartered in Archbold, Ohio, Sauder Woodworking currently employs
 3,500 people.  The company operates a distribution facility in Salt Lake City,
 Utah, but all RTA manufacturing is located in Archbold.  Company subsidiaries
 include Archbold Container and Sauder Manufacturing, the nation's largest
 manufacturer of church seating.  Total company revenues for 2000 were
 $575 million.  Combined sales for Sauder and Progressive will exceed
 $700 million.
 
 

SOURCE Sauder Woodworking Co.
    ARCHBOLD, Ohio, April 5 /PRNewswire/ -- Sauder Woodworking Co., North
 America's largest manufacturer of ready-to-assemble (RTA) furnishings, has
 announced plans to purchase Progressive Furniture Inc., a rapidly growing
 manufacturer of traditional solid wood, veneered and laminate furniture.
     The companies expect the transaction to be finalized by the end of June.
 Though financial terms of the planned acquisition were not disclosed,
 Progressive will operate as an independent subsidiary, retaining its current
 management, employee force and operations.
     A highly respected, privately held manufacturer of wood bedroom, dining
 room, occasional and entertainment furniture, Progressive has expanded sales
 from $47 million in 1995 to $125 million in 2000.  Headquartered in Swanton,
 Ohio, the company has a manufacturing facility in Claremont, NC, and imports
 furniture from contract factories in Mexico, Indonesia and China.
     "This acquisition is a strategic initiative that allows us to expand our
 product offerings and distribution channels, and also to respond to new and
 emerging markets," explained Kevin Sauder, president and CEO of Sauder.
 "Adding the resources of an expert case goods producer and importer to our
 successful RTA business is a logical next step for a company our size.  In
 short, it strengthens our position as a world-class manufacturer and
 marketer."
     Progressive has experienced excellent market acceptance in recent years
 because of the product's value, its quality materials and craftsmanship, and
 its customer-oriented styling, Sauder continued.  The company's products
 complement, yet in no way duplicate, Sauder's RTA offering.  Both lines will
 continue to be sold under existing brands by their current sales forces.
     The acquisition will expand Sauder's distribution channels by adding a
 greater number of mid-priced retailers to its customer mix.  Progressive's
 expertise in the import arena also will be valuable as Sauder continues to
 source materials and components for RTA products.
     "Our product lines complement one another and our corporate cultures are
 compatible," Peter Pilliod, chairman of Progressive said.  "In addition, many
 synergies exist between our two operations.  The added strength of Sauder's
 financial resources and its marketing acumen will help Progressive continue
 its rapid pace of growth and product development."
     Progressive's domestically produced wood veneer and laminate bedroom and
 entertainment furniture retails in the promotional price range.  Under the
 Woodlands Designs brand, the company imports bedroom, dining room, occasional
 and entertainment furniture from Mexico, China and Indonesia.  The line
 features finely crafted solid wood and inlaid veneer products at affordable
 mid-range prices.
     Headquartered in Archbold, Ohio, Sauder Woodworking currently employs
 3,500 people.  The company operates a distribution facility in Salt Lake City,
 Utah, but all RTA manufacturing is located in Archbold.  Company subsidiaries
 include Archbold Container and Sauder Manufacturing, the nation's largest
 manufacturer of church seating.  Total company revenues for 2000 were
 $575 million.  Combined sales for Sauder and Progressive will exceed
 $700 million.
 
 SOURCE  Sauder Woodworking Co.