As part of its ongoing strategy to focus resources on its core business operations that offer distinct competitive advantages to its customers across a variety of market sectors, HS Manufacturing, LLC (“HS”), a wholly owned subsidiary of Hickory Springs Manufacturing Company (“HSM”), has sold its wood fabrication business to Precision Materials, LLC (“Precision”). Concurrently, HS has entered into a strategic alliance with Precision for the long-term supply of fabricated wood components for its businesses that serve customers in the bedding, furniture and transportation industries. The transaction closed on March 31, 2021.
The move will allow HS to source fabricated wood components more competitively by leveraging Precision’s core competency and far-reaching commodity purchasing relationships. As part of the transaction, Precision will assume operations at HSM’s Blue Ridge facility located in Hickory, North Carolina, where the fabricated wood components are currently manufactured, along with some of HS’ bedding and fabricated foam components.
Having sold the wood fabrication business to Precision, HS has relocated the bedding and fabricated foam component operations to other HS bedding and furniture facilities – creating manufacturing efficiencies and providing additional value to its customers.
“This divestiture further demonstrates our commitment to executing on our strategic plan to continually grow our core businesses by concentrating on the competencies and business lines that truly set us apart in the marketplace,” said Mark Jones, president and chief executive officer of HSM. “Over the past 77 years, HSM has grown into one of the nation’s largest integrated manufacturers, and as we continue to become a more comprehensive solutions provider for our customers, this move will help solidify our position as a trusted and reliable domestic supplier that offers value-added solutions for the many industries we serve.”
Based in Taylorsville, North Carolina, near HSM’s headquarters in Hickory, Precision is a contract manufacturer for several industries and market sectors, including furniture, bedding and point-of-purchase displays. The company fabricates woods and plastics, and provides furniture assembly, machining and specialized crafting services.
“Our new alliance with HSM will expand our capabilities, gain access into the transportation sector and increase the value we provide to our customers, while allying us with a company that has become one of the nation’s largest integrated manufacturers,” said Scott McHugh, president and chief executive officer of Precision Materials. “HSM is relentlessly customer-focused and our relationship will heighten both of our abilities to continue to provide the industries we serve with quality products and great customer service.”
No employees will be displaced due to the transaction. HSM will move some of its employees to other HS furniture and bedding facilities, while those that remain at the Blue Ridge facility will join the Precision manufacturing team. The transaction was structured to be seamless for both companies, and to ensure no interruption in service to customers, vendors or employees.
About HSM: HSM is a privately held company based in Hickory, North Carolina, with more than 25 manufacturing plants in 13 states. In addition to its core furniture and bedding markets, HSM serves a range of customers in the transportation, packaging, healthcare, apparel and other industries.
About Precision: Precision is a processor of wood components and supplies primarily to the furniture, industrial shelving, and store fixture industry sectors. Privately held and established in 2008, Precision operates three facilities in North Carolina and one in Alabama.