Ethan Allen Expands Manufacturing in North Carolina

Rhea-AI Summary

Ethan Allen Interiors Inc. (NYSE: ETD) announced the acquisition of assets from Dimension Wood Products, enhancing its vertical integration. This strategic purchase aims to bolster control over raw materials and labor costs while ensuring high-quality standards. Dimension Wood Products, a supplier since 1981, specializes in wood frames and machined parts for upholstery. CEO Farooq Kathwari underscored that this move will strengthen operational capabilities. Ethan Allen operates nine manufacturing facilities across North America, producing approximately 75% of its products domestically.

Positive

• Acquisition of Dimension Wood Products' assets strengthens vertical integration.
• Increased control over raw materials and labor costs enhances operational efficiency.
• Maintaining high-quality standards in production.

Negative

• None.

DANBURY, CT, Feb. 17, 2022 (GLOBE NEWSWIRE) -- Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE: ETD) today announced that it has further strengthened its vertically integrated enterprise. Through its subsidiary, Ethan Allen Operations, Inc., the Company purchased certain property, plant and equipment assets of Dimension Wood Products, Inc. Founded in 1981 and located in Claremont, North Carolina, Dimension Wood Products, Inc. is a manufacturer of wood frames and machined parts used in upholstery manufacturing and has been a supplier to Ethan Allen.

Farooq Kathwari, Ethan Allen’s Chairman, President and CEO, commented, “We are pleased to have completed the asset purchase with Dimension Wood Products, Inc. Their talented associates, workshop and machinery will help us to further increase our control over raw materials, purchased parts, and labor costs while maintaining our high-quality standards.”

ABOUT ETHAN ALLEN

Ethan Allen Interiors Inc. (NYSE: ETD) is a leading interior design company, manufacturer and retailer in the home furnishings marketplace. The Company is a global luxury home fashion brand that is vertically integrated from product design through home delivery, which offers its customers stylish product offerings, artisanal quality, and personalized service. The Company provides complimentary interior design service to its clients and sells a full range of home furnishings through a retail network of design centers located throughout the United States and abroad as well as online at ethanallen.com. Ethan Allen owns and operates nine manufacturing facilities located in the United States, Mexico and Honduras, including one sawmill, one rough mill and a lumberyard. Approximately 75% of its products are manufactured or assembled in these North American facilities.

For more information on Ethan Allen's products and services, visit www.ethanallen.com.

Investor / Media Contact:  
Matt McNulty
Senior Vice President, Chief Financial Officer and Treasurer
IR@ethanallen.com

FAQ

What assets did Ethan Allen acquire from Dimension Wood Products?

Ethan Allen acquired certain property, plant, and equipment assets from Dimension Wood Products.

How does the acquisition impact Ethan Allen's operations?

The acquisition enhances Ethan Allen's control over raw materials and labor costs, improving operational efficiency.

When was the acquisition of Dimension Wood Products announced?

The acquisition was announced on February 17, 2022.

What percentage of Ethan Allen's products are manufactured in North America?

Approximately 75% of Ethan Allen's products are manufactured or assembled in North America.

Who is the CEO of Ethan Allen?

Farooq Kathwari is the Chairman, President, and CEO of Ethan Allen.