Furniture Today
ARCHBOLD, Ohio — Sauder Woodworking, North America’s largest ready-to-assemble furniture


producer, has acquired key assets of O’Sullivan Inds., a rival RTA resource that’s been struggling financially for months.

The deal, details of which weren’t disclosed, includes all of O’Sullivan’s intellectual property — its name, select product drawings, patents and a licensing agreement to produce garage storage units under the Coleman brand name.

The purchase does not include O’Sullivan’s 1.1 million-square-foot factory in Lamar, Mo., or any production equipment.

O’Sullivan halted production earlier this month, but work at the factory resumed yesterday under a short-term operating agreement with Sauder.

Kevin Sauder, president and CEO of Sauder Woodworking, said his company will purchase raw materials and pay O’Sullivan to operate the plant “for a few months” until production is shifted to Sauder’s factory in Archbold, and about 200 jobs are added.

“This will allow us to keep O’Sullivan product on retail floors and in stock during the transition,” Sauder said.

He said the purchase will allow Sauder to expand its business with many key retailers, notably Lowe’s, Staples, Big Lots, Shopko and Wal-Mart. “This arrangement will help us retain our position as a world-class domestic producer, while bringing more jobs to Archbold,” Sauder said.

O’Sullivan emerged from Chapter 11 bankruptcy protection in April 2013, but has continued to struggle financially. The company, which primarily is owned by a consortium of private equity companies, closed a factory in South Boston, Va., late last year and also eliminated its showroom at the High Point Market.

The company had sales of about $200 million last year, while Sauder racked up RTA furniture sales of about $550 million.

Sauder also owns case goods manufacturer and importer Progressive Furniture, as well as contract furniture producer Sauder Mfg.