UPHOLSTERY conglomerate La-Z-Boy Inc. is to acquire the licence for the La-Z-Boy brand in the UK and Ireland from Furnico Limited, its longtime distribution partner.

lazboyHQThe Michigan based furniture vertical has created a new UK subsidiary and installed Keith Wilson — until recently with Calligaris, serving as director for its UK and Ireland business — to lead that company.

The existing Furnico business outside of the La-Z-Boy licence will continue with its normal operations, La-Z-Boy said in a statement to shareholders. Furnico has been La-Z-Boy’s distribution partner in the market for the past eight years.

The deal is effective from 1st January 2017, La-Z-Boy said, adding that annual wholesale revenues for the acquired business totalled around $42 million (£34 mill.) at current exchange rates.

Terms were not immediately disclosed.

La-Z-Boy Inc. created its new UK company back in January this year, suggesting a deal has been formulating for a number of months.

It will be based in Maidenhead, Surrey, with Mr Wilson to work closely with Jeff Lillich, the head of La-Z-Boy’s Europe, Middle East and Africa business. A team will be recruited to support the growth of the business and its existing customers, La-Z-Boy added.

Doug Collier, senior vice president, chief marketing officer and president International, of La-Z-Boy Inc., said, “Furnico has done an amazing job in growing the business and we intend to further enhance our position in the market by making investments in the brand and our digital presence. We thank David Winter, Paul Riding and the rest of the Furnico team for the outstanding work they have done, and look forward to a great future for the business.”

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