H.I.G. Capital Noticias
Bush Industries, Inc.
Letter of Intent Announced Between Bush Industries TASC and National Product Services
MIAMI - October 1, 2000 - Companies to Combine Operations Jamestown, N.Y. --- Bush Industries (NYSE:BSH), the nations eighth largest furniture manufacturer, today announced that it has signed a letter of intent to combine the operations of its in-store furniture merchandising division TASC (The Assembly & Service Company) with WRTA/RMS, a wholly-owned subsidiary of National Products Services, Inc. (NPS), a leading provider of on-site assembly services for the ready-to-assemble (RTA) furniture industry.
Under the terms of the proposed combination, Bush Industries will receive NPS common stock and the assets of TASC and WRTA/RMS will be merged to form the largest company focused exclusively on the delivery of in-store merchandising and on-site assembly services to the RTA industry. The newly combined entity will be operated as a wholly-owned subsidiary of NPS. The transaction is expected to close in the fourth quarter, contingent upon the approval of the board of directors of both companies.
The anticipated combination of TASC with NPS would provide best-in-class in-store merchandising and on-site assembly for our retail partners and consumers, commented Paul Bush, president, CEO and chairman of the board at Bush Industries. It is our intent that through this merging of operations we will be able to more quickly and more completely achieve the mission originally set forth for our TASC division, that is to make ready-to-assemble furniture as successful as possible, by effectively providing retailers and consumers with the necessary best-in-class in-store and in-home services.
We are very excited with the management personnel, operating infrastructure and information systems that TASC would bring to WRTA/RMS and our customers through this anticipated combination, commented Rich DAmico, president and CEO of NPS. Since acquiring WRTA/RMS last fall, it has been our goal to provide the RTA industry with the full range of services essential to its success. We believe that this proposed combination would help us to reach that goal by solidifying our in-store merchandising presence and enhancing our on-site assembly offerings. We look forward to the opportunities created by this combination to enhance the high level of service provided in the past by these two fine companies.
TASC was created in 1998 to service channel partners by providing on-location training and display assistance as well as to service consumers by offering delivery and assembly services for ready-to-assemble furniture. WRTA/RMS was acquired in the fall of 1999 by NPS to provide in-store merchandising and on-site assembly services for the ready-to-assemble furniture industry. Founded in 1959 and headquartered in Jamestown, New York, Bush Industries manufactures a broad range of home and commercial office, home entertainment, bedroom and occasional furnishings that are assemble by the consumer. Founded in 1999 and headquartered in Irving, Texas, NPS is a leading provider of outsourced, in-market merchandising services to major consumer product manufacturers and large retail chains nationwide.
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H.I.G. is a private equity and venture capital investment firm with more than $750 Million of equity capital under management. Since its founding in 1993, H.I.G. has been an active investor in management-led buyouts and recapitalizations as well as venture capital technology investments. H.I.G. currently has investments in more than 45 companies with combined revenues in excess of $3 Billion.