Healthcare Co., Ltd. has signed a letter of intent to acquire 36-store Mor Furniture for Less, the San Diego-based home furnishings retailer with estimated annual sales of more than $310 million. The company expects to pay more than $68.4 million for the retailer and the transaction is expected to be completed by the end of October. It also plans to operate the businesses separately, each with a different team of executives with direct reports to China.
Healthcare Co., Ltd. owns MLILY USA, a mattress manufacturer based in Knoxville, Tennessee.
The acquisition of one of the industry’s leading retailers will give Healthcare a direct pipeline to better understand U.S. retailers and customers.
“The direct day-to-day contact with consumers through Mor’s vibrant retail locations gives us the opportunity to gather critical information about consumer shopping behavior in the U.S.,” said James Ni, chairman and chief executive officer of Healthcare Co. “Direct consumer interaction will help us hone our OEM product development and better serve our growing network of customers throughout the world.”
Healthcare will acquire the chain from Mor Furniture founder Richard Haux Sr. and a number of other members of the Haux family. Haux founded the company in 1977 as a small waterbed store. Today, Mor operates large-format stores in seven states: California, Nevada, Oregon, Washington, Idaho, New Mexico and Arizona.
The Mor acquisition will be the second retail acquisition by Healthcare in the last 18 months, but its first in the United States. Last year, Healthcare acquired Maxcolchon, a Spanish bedding manufacturer and retailer, and currently operates 57 stores across Spain.
About Healthcare Co.: Healthcare Co. is a global home furnishings juggernaut with 20 holding companies globally. Based in China it operates factories in there and in Serbia and Thailand. In addition to the United States, the company serves markets in Europe, the Middle East and North Africa.