Flexsteel Industries Inc., a supplier of furniture to RV manufacturers, has acquired control of furniture importer DMI Furniture Inc. of Louisville.
Flexsteel, based in Dubuque, Iowa, received almost 4 million shares of DMI stock as of early Thursday (Sept. 18), for which Flexsteel announced earlier that it would pay $3.30 a share.
The shares that Flexsteel received as part of its tender offer are equivalent to almost 92% of DMI’s stock. Flexsteel also announced on Thursday it would give the owners of the remaining 8% of DMI’s shares until Oct. 1 to sell their stock to Flexsteel for $3.30 a share.
Last month, Flexsteel announced it would pay a total of $44 million for DMI, an amount that includes the assumption of DMI’s $27 million debt.
DMI is an importer and marketer of residential and office furniture, so its acquisition does not directly affect Flexsteel’s RV furniture business.
Prior to the acquisition, about 25% of Flexsteel’s $290 million in annual sales revenue came from RV industry customers. The DMI acquisition raises Flexsteel’s annual sales up to the $400 million range, of which about 20% is RV-related.