ST. LOUIS, Feb. 21, 2008 (PRIME NEWSWIRE) -- Furniture Brands International (NYSE:FBN) today confirmed that it has received an unsolicited letter from Sun Capital Securities Group, LLC, expressing an interest in acquiring all outstanding shares of Furniture Brand's common stock. The letter from Sun Capital is non-binding, does not include an offer price for the shares, and contains numerous caveats including due diligence, and therefore does not provide the company's Board of Directors with any meaningful basis upon which to evaluate the letter.
Furniture Brands Vice Chairman and CEO Ralph P. Scozzafava said, "We are executing a strong strategic transformation that is already creating value for Furniture Brands shareholders. We're on track with our own aggressive timetable to transform this company, and we're already seeing the positive results of our efforts. Sun Capital is aware of our strategic initiatives and has to date been supportive of the plan.
"Today's letter comes when many industry observers see the home furnishings industry at the bottom of the cycle. We have an obligation to manage this business so that all shareholders can participate in the benefits of our strategic plan as well as improving industry dynamics," Mr. Scozzafava said.
W.G. (Mickey) Holliman, Chairman of the Board, said, "Sun Capital is not only a shareholder but also a competitor with extensive holdings in the home furnishings industry. We concur with their assessment that Furniture Brands' business model is valuable. The board intends to provide all of our current shareholders with the best path to realizing the full value of that business model.
"Our board continually reviews strategic alternatives for the company. In the fall of 2007, the board reviewed a similar, preliminary, non-binding expression of interest from Samson Holdings Ltd. The board requested additional information from Samson that has not been provided. The board firmly supports the strategic plan and, then as now, is committed to creating long-term value for all shareholders," Mr. Holliman said.
In October 2007, the company unveiled its strategic plan at an investor meeting in New York. The plan is built on four core elements -- Build Our Brand Power, Win With Customers, Deliver Operational Excellence, and Grow and Develop Our People. Investors are encouraged to visit the investor relations section of the company's website at www.furniturebrands.com/Investor-Info to view the management presentation as well as view updates to the plan that were provided at the company's year-end 2007 earnings conference call. The company will continue to update progress on the plan at its quarterly investor webcasts. In addition, CEO Ralph Scozzafava is scheduled to provide a company update at the Raymond James Institutional Investors Conference on March 4, 2008.
"Our management team is 100% committed to achieving our 2008 profitability goals, just as we were 100% committed to strengthening our balance sheet in 2007. We were successful in 2007 and today we have the most cash and least debt of any time since Furniture Brands completed a recapitalization in 1993. We look forward to sharing the progress on our plan with all investors throughout 2008," Mr. Scozzafava said.
About Furniture Brands
Furniture Brands International (NYSE:FBN) is a vertically integrated operating company that is one of the nation's leading designers, manufacturers, and retailers of home furnishings. With annual sales in excess of $2 billion, it markets through a wide range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, and Maitland-Smith.
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