Bush Sells Facility
Posted on December 12, 2011 by
Photo Courtesy of LoopNet
JAMESTOWN, N.Y.-Bush Industries, Inc., has completed a sale-leaseback transaction involving the sale of one of its buildings located in Erie, Pa., to Lord Corporation.
Bush will lease approximately 500,000 square feet (nearly half) of the facility it currently occupies from Lord Corporation. All of Bush's current distribution operations in Erie, including the automated storage and retrieval system, will continue uninterrupted and employees will not be impacted by the sale and subsequent lease agreement.
"As we continue to move forward with the rollout of our national distribution and logistics strategy, the opening of facilities such as our Reno, Nevada, center have reduced the requirements of our space in Erie," said Jim Sherbert, CEO of Bush Industries. "Based on this, we made a strategic decision to sell the property and lease back the space we currently use, so that we can reinvest the proceeds in our growth initiatives for Bush Furniture and BBF."
The Erie facility will continue to serve as a core Bush Industries' U.S. distribution center, with no interruption in operations as a result of the sale. The sale of the Erie facility comes on the heels of a strategic alignment this fall when Bush Industries completed the final phase of separating into two distinct operating divisions--Bush Furniture and BBF. Each division assumed its brand name and has been operating as a separate strategic business unit of Bush Industries.
"In the past two years, Bush Industries has aggressively transitioned to this business model, completed a successful rebranding of our divisions, built an impressive portfolio of products and services, and formed valuable strategic partnerships--all of which positions us for even greater growth and success," Sherbert said. "Now with the sale of the Erie building, we can reinvest this capital in our business units to enable expansion in the areas of sales, product development, marketing and distribution--a business decision that will result in even more jobs at Bush Furniture and BBF."