Gabriel agrees to sell its European FurnMaster business to Leggett & Platt

Gabriel Holding A/S announced that, as a result of an adjusted growth strategy with an increased focus on the development of the Group’s global textile business, it would initiate a full or partial divestment of the Group’s furniture manufacturing operations, the “FurnMaster business”. FurnMaster has a leading position in the market and in Europe consists of two companies located in Poland and Lithuania respectively as well as a dedicated department in Gabriel A/S in Aalborg, Denmark.

The transaction agreement entails that a wholly owned subsidiary of Leggett & Platt, Incorporated acquires the shares in the two subsidiaries, UAB FurnMaster (Lithuania) and FurnMaster Sp. z o.o. (Poland), and will assume responsibility for the employees, assets and liabilities of the dedicated FurnMaster division within Gabriel A/S. The Group’s Mexican FurnMaster business is not included in the transaction and will continue to be offered for sale.

The initial purchase price (Enterprise Value) has been agreed at DKK 67.3 million (approximately EUR 9 million). In addition, there is the possibility of a conditional deferred cash payment of up to DKK 7.5 million (approximately EUR 1 million). The transaction remains subject to customary closing conditions.

Management has prioritised finding a qualified buyer who recognises FurnMaster’s strong market position and possesses the necessary capabilities and platform to further develop the business, while at the same time achieving a transaction value that positively impacts the Group’s financial position. Management believes that the agreement fully satisfies these objectives, as the transaction both enables the continuing business to maintain its desired strategic focus on the development of the Group’s global textile operations and significantly strengthens the Group’s balance sheet through the cash proceeds from the sale.

With locations in North America, Europe and Asia, Legett and Platt’s Work Furniture business is a leading supplier of components and finished furniture to leading furniture brands. Through its strong global platform, including ownership of Trio Line in Poland, which it has successfully operated for a number of years, Leggett & Platt possesses the organisational structure and competencies required to support FurnMaster’s continued development. Consequently, management is highly satisfied that Leggett & Platt has become the new owner of the business.

For further information regarding the transaction, please contact Gabriel Holding A/S. Gabriel Holding A/S has been advised throughout the transaction by Deloitte Corporate Finance and DLA Piper.

About Leggett & Platt: Leggett & Platt (NYSE: LEG) is a diversified manufacturer that designs and produces a broad variety of engineered components and products that can be found in many homes and automobiles. The 143-year-old company is a leading supplier of bedding components and solutions; automotive seat comfort and convenience systems; home and work furniture components; geo components; flooring underlayment; and hydraulic cylinders for material handling and heavy construction applications. For further information, please visit www.legget.com