Bassett Completes IHFC Sale to Las Vegas Market Owners
May 3, 2011,
BASSETT, Va.-Bassett Furniture Industries, Inc., announced today the completion of the sale of its interest in the International Home Furnishing Center in High Point, N.C.
Bassett sold the market showroom building for $275 million, plus the assumption of debt of $100 million to the acquirer, a newly formed company International Market Centers, which was identified in a press release as the owners of the World Market Center buildings in Las Vegas, plus the recently purchased Market Square Complex in High Point.
"This platform constitutes the world's largest network of premium business-to-business home furnishings, gift, and home decor showroom space," the press release said. "IMC is majority owned by funds managed by Bain Capital Partners and a subsidiary of certain investment funds managed by Oaktree Capital Management."
In the transaction, Bassett invested $2.4 million in return for a minority stake in IMC.
After set-aside escrows for an ongoing tax audit of IHFC and representations and warranties, legal fees and other transaction costs, Bassett realized a pre-tax distribution of approximately $74 million from the sale.
IMC released a statement today that it has reached agreements to acquire five additional buildings encompassing nearly one million gross square feet including Showplace, Showplace West and three North Hamilton Street showroom venues in High Point. Upon the closing of this transaction, IMC will own and operate a total of 18 showroom buildings spanning 11.5 million square feet. Closing is expected within 60 days, according to IMC.