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Flexsteel Industries Inc., a supplier of upholstered furniture to the RV industry, announced today (Aug. 13) that it signed a definitive purchase agreement to buy Louisville-based DMI Furniture Inc.
Flexsteel, a Nasdaq Stock Market-traded company, will pay a total of around $44 million for DMI, also a Nasdaq-traded firm.
The transaction is expected to be finalized in September.
The deal calls for Flexsteel to pay DMI stockholders $3.30 a share and for Flexsteel to assume DMI’s $27 million in outstanding debt.
DMI, and importer and marketer of residential and commercial office furniture, will be operated of an independent business unit of Flexsteel and its headquarters will remain in Louisville.
“The combination of our two companies will allow us to capitalize on the strengths of both organizations,” said Bruce Lauritsen, president and CEO of Dubuque, Iowa-based Flexsteel. “DMI Furniture distribution, product lines and global sourcing infrastructure will enhance Flexsteel’s focus on expanding its product offerings, while the financial strength of Flexsteel provides the resources for continued growth of DMI Furniture.”
DMI’s divisions are WYNWOOD, Homestyles and DMI Commercial Office Furniture. It has four manufacturing plants and warehouses in Indiana and manufacturing sources in Asia and South America.
The DMI acquisition will impact Flexsteel’s residential and commercial furniture businesses, said Tim Hall, Flexsteel’s spokesman.
RV industry customers currently account for 25% to Flexsteel’s annual sales revenue, which now totals around $290 million.
Once the combination with DMI is finalized, Flexsteel will have around $400 million in annual sales and the RV industry would then account for about 20% of its total annual revenue, Hall said.