Yvette Armendariz
A furniture maker that once employed hundreds in Phoenix had to become leaner to survive – and the moves quickly


led to a global business model and a spot as a top 10 manufacturer in case goods.

Phoenix-based SLF Inc., previously known as Samuel Lawrence Furniture, recently merged with Virginia-based Pulaski Furniture after a six-year effort to remake the business.

Terms of the deal weren’t disclosed, but insiders told industry magazine Furniture Today that the combined company, called Home Meridian International, would have sales of about $270 million.
advertisement

Its line includes bedrooms, dining rooms, youth furnishings and home office.

The combination makes it a top 20 furniture exporter and a top 10 maker of case goods, which are furniture pieces designed for storage, according to the companies.

George Revington, who was recruited to lead SFL’s transformation into a global business nearly six years ago, will head the combined companies. The SLF division, which employs about 60 workers, remains based in Phoenix.

Revington expects the Phoenix operation to grow by at least one-third as the two merged companies start selling their lines on opposite coasts. Pulaski has primarily been focused on distributing its mid- to upper middle-priced lines on the East Coast, while SLF has focused selling its lines in the West at retailers such as the RoomStore and Levitz, he said.

He declined to share sales, pointing to the company being private. But he said sales were looking positive.

Revington was in Las Vegas last week to promote SFL’s new youth line of furniture, called Creation, to retailers nationally at the ABC Kids Expo.

Adapting to market
SLF began its transformation after Minneapolis-based private equity firm Goldner Hawn Johnson & Morrison bought it in January 1997. A result of the latest merger, Goldner Hawn divested its equity interest.

“It was a strong niche player,” said Gary Obermiller, managing director for Goldner Hawn.

At the time Goldner Hawn picked it up, Samuel Lawrence Furniture was owned by Sealy Mattress Co. and focused on making early American style furniture. The company was based in Phoenix because of the proximity to ponderosa pine mills and a good labor market, he said. Before Sealy bought it, the company had made waterbed frames.

With Sealy behind the company, the furniture sold nationally. Business continued to grow. Then the industry hit hard times. Many national furniture retailers began going out of business in the late 1990s and early 2000s.

SLF adapted by diversifying its lines and developing a plan to manufacture in China, as other companies that survived an industry consolidation were also doing.

“To keep the business solid we had to change the business model, (and) give value to shareholders,” Obermiller said. That’s when Revington, who spent 15 years with Universal Furniture, was brought in. At Universal, he integrated Asian manufacturing with U.S. marketing and expanded the furniture offerings, which helped the company more than quadruple sales.

Goldner Hawn held its investment much longer than usual. It typically holds private equity investments three to five years, Obermiller said.

“We had to make the transition to really add value to the next buyer . . . (and) that takes time,” he said.

Obermiller calls SLF a leader in globalization of the furniture industry, pointing to supply chain processes it developed.

SLF last year completed a transformation into a global company. Among the changes were restructured its business into three divisions: SLF Asia, focused on furniture manufacturing quality; SLF Signature, a “better” quality line of furniture; and SLF Select, a promotional, lower-priced line. During that time, the company also expanded its offerings to go beyond bedroom sets.

Fewer jobs in Phoenix
Phoenix remains the company’s distribution, accounting and supply chain hub in the West.

But the move toward manufacturing in China diminished employment significantly here. Through the 1990s, employment had grown from 200 to 900 by the year 2000.

Revington said cuts were “extremely” tough, but the company had to shift from a domestic manufacturer to a global company to stay competitive. “Today we’re growing business and doing well.”

SLF, since 1998, has been housed at the Reywest Industrial Center at 109 N. 37th Ave. It also has offices in Dongguan City, China, and High Point, N.C.

And the future, despite a recent softening in the furniture market, looks bright, Revington said. Part of his enthusiasm stems from SLF’s merge with a Pulaski, a company that compliments SLF’s lines with higher-end furnishings.

“There’s a lot of pent-up demand for furniture,” he said. “How many times do you go to a friend’s home and there’s nothing in the dining room?”

A housing slowdown isn’t worrying Revington at this time.

“Furniture is more resilient to slowdowns than people think. I doubt it will be a down year. It might be flat.”