The US manufacturer has signed a deal selling its luxury furniture brands to China's Samson.
Kohler is well-known for manufacturing a range of kitchen and bathroom fixtures. Source: Forbes
Samson Holding Ltd, an international manufacturer and supplier of furniture based in China, has acquired the luxury brands Baker, Milling Road and McGuire from Wisconsin-based Kohler. Once finalized on February 28, the deal, which is said to have amounted to $35 million, will signal Kohler's exit from the furniture market.
Spokesman Todd Weber announced that despite the departure from the furniture business, Kohler will maintain its decorative and interior product brands. Better known for supplying kitchen and bathroom fixtures, including sinks and faucets, Kohler has owned the brands Baker and Milling Road since 1986. The high-end Baker brand has been in operation since 1890. In 1990, the US manufacturer bought McGuire, which specializes in hospitality furniture.
As part of the agreement with Samson, Kohler will sell two factories based in Indonesia, the brand Baker's 70,000sqm factory in Hildebran, and a distribution center and 36 acres of land in Hickory for up to $35 million. Further details about the transaction are yet to be disclosed.
Regarding the luxury furniture industry, the market is predicted to grow to $28.6 billion by 2022, posting a CAGR of 3.7 percent. Rapid urbanization and increasing demand are identified as key drivers.