Contract Manufacturer A.C. Furniture For Sale
Furniture World News Desk on
3/22/2020
Equity Partners announced that it has been engaged to sell the business or assets of A.C. Furniture Company, Inc. ("ACF", or the "Company"), which is one of the country's largest contract manufacturers of seating for the hospitality, healthcare and food service industries. The Company has been in continuous operation since its inception in 1977. At its peak, the Company employed more than 400 skilled craftsmen and had revenue in excess of $50 million. It continues to operate at five properties located in Eden, NC and Axton, VA, all within 20 minutes of each other.
Quick Look
Overview
Contract seating to hospitality, healthcare, food service
Upholstered and wood
1,000,000 sq. ft. of Manufacturing and warehouse space
Average of 7,000 pieces produced weekly
300,000-400,000 raw frames are in stock at any given time
Non-Union Employee Base strong experienced labor pool available
Highlights
Outstanding customer base and reputation
Massive manufacturing capacity
Markets demanding just in time domestic manufacturing
Quality products - compelling customer value proposition
Limited competition
Experienced management team
Sustainability conscious operation
Assets Include
Substantially all assets: Real estate, M&E, inventory, AR, and intellectual property including existing designs
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ACF sells to many major national and international hotel and restaurant brands, both direct and through manufacturers reps. The Company has always strived to provide quality merchandise, responsive customer service and high value products to all the markets that they serve. Fabrics offered by ACF meet industry proven standards and include several modestly priced upholstery choices for price sensitive installations. ACF offers a choice of over 2,000 color choices with many selections meeting (or exceeding) minimum abrasion resistance standards of 30,000 double rubs on wire and cotton. In addition, all standard fabrics are formulated to meet the small-scale flammability test requirements for upholstered materials contained in specifications such as California Technical Bulletin 117, Section E; Motor Vehicle Safety Standard No. 302; UFAC Class I; NFPA 260; and BIFMA Class I., etc. Exposed wood furniture is hand finished in ACF's facilities which allows ACF to provide a wide variety of custom colors as required by their customers. Offering much more than the normal collection of "standard" finishes is another way the Company brings value and customer service together, while setting it apart from all of its competitors.
ACF owns a combined 1,000,000 square feet of manufacturing and warehouse space. It has historically stocked 300,000 - 400,000 raw frames to serve its customer needs and it currently operates three machine rooms every day to manufacture items that are not regularly stocked. The Company has demonstrated capacity to build and ship over 7,000 pieces of furniture per week.
ACF constantly assesses for ways to lower their carbon footprint and offer "green" alternatives to its industry leading manufacturing processes including sourcing its domestic wood from sustainable forests. In addition, ACF recently implemented a recycling program that reduces the factories' carbon footprints by over 50%. More than 80% of incoming raw materials are either packaged in corrugated cardboard, wood crates or come on wooden pallets; ACF recycles 100% of these packaging materials.
Due to limited liquidity to purchase inventory, the Company's current run rate is approximately $15mm annually but can increase immediately once properly funded. In addition, ACF has developed a residential line of furniture that has been well-received and is ready for full-scale launch.
For more information on A.C. Furniture and further details on the process, please contact Fred Cross at (443) 951-4843, or send an executed Confidentiality Agreement to:
a Division of
Debbie Beall
Office Phone & Fax: 443-951-4854
dbeall@schgroup.com
About Equity Partners: Equity Partners HG specializes in helping lower and middle market companies in tough to navigate financial situations. We help businesses facing special situations, those looking to finance growth, and those wishing to sell at maximum value.
We uncover every source of debt or equity, bring every viable buyer to the table, and achieve remarkable results, usually within 60 – 90 days. Our involvement in over 500 transactions across the US is just one of the reasons we are regarded as a premier middle market investment bank.
Since we began in 1988, we have been successful in delivering optimal solutions for our clients, no matter what it takes or how challenging the circumstances.
For information on Equity Partners' other current engagements, click here.