Hooker signs letter of intent to buy Opus
By Heath Combs -- Kids Today, 11/1/2007 12:00:00 AM
In a move to bolster its youth bedroom line, Hooker Furniture has signed a letter of intent to purchase the assets of New York-based importer Opus Designs.
The acquisition will allow Hooker to build a strong youth bedroom program at more moderate price points, said Paul Toms Jr., the company's chairman, president and CEO.
Opus is expected to have sales of about $5 million to $6 million this year. It sells to retailers like Nebraska Furniture Mart, Eldorado and Furnitureland South.
James Millner, Opus' president of design and engineering, is a 20-year veteran of youth product design. He worked for Stanley and Lea Inds. before starting Opus. Millner will make the move to Hooker as its vice president of design & merchandising responsible for designing and merchandising the youth and second bedroom categories.
Toms said the deal will give Hooker a more comprehensive product line with superior sourcing arrangements than its current SmartKids youth furniture line.
He said the company intends to keep the SmartKids brand and will continue with the products it already has introduced under that name, but will look for a way to meld the line with Opus Designs and may co-brand the goods.
He described Opus as a successful entrepreneurial company that Hooker can provide with financial backing for growth and can support with enhanced systems, better forecasting, inventory management and quality assurance.
"We're committed to youth bedroom, having entered the category around the same time Opus began in 2005, but we have struggled to become an important resource," he said. "As part of our commitment to become more competitive in the category, we looked for an established company with a solid sourcing structure and a broad product line. We believe we have found that, at slightly lower price points, in Opus."
Because of the lower price points, Hooker could reach a younger customer and a broader income spectrum, Toms said.
The deal with Opus is expected to close some time in the fourth quarter.
Opus offers 10 groups covering the key style bases in youth bedroom, including cottage, pine, Victorian and transitional. Multiple finishes are offered on some groups.
At Opus, a bunk retails for about $699, while a twin bed without underbed storage sells for about $299.
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Hooker to acquire Opus Design assets
Oct 24, 2007 -
Hooker acquires Opus Designs
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