Manufacturer, case goods company and furniture importer Hooker Furniture will more than double its scope in a plan to purchase Home Meridian International, the global design and marketing company. Hooker, which launched a Cynthia Rowley furniture collection last market, has entered an asset purchase agreement to take on all of the assets and certain liabilities of HMI for approximately $100 million, including $85 million in cash and $15 million of newly issued Hooker Furniture stock. Both cash and stock allocations are subject to customary working capital adjustments.

HMI is expected to run as an autonomous division within Hooker Furniture, led by its current CEO, George Revington, and his current management team. With the new acquisition, Hooker’s sales are projected to eclipse $500 million.

“We are unbelievably excited at the prospect of having the individual businesses that comprise Home Meridian International become part of our Hooker Furniture Corporation stable of brands,” said Paul B. Toms Jr., chairman and CEO of Hooker Furniture. “Pulaski Furniture, Samuel Lawrence Furniture, Prime Resources, Sourcing Solutions Group, Right2Home and Samuel Lawrence Hospitality are all vibrant, well-run businesses addressing more moderate price points and some channels of distribution not currently served by the Hooker Furniture, Sam Moore, Bradington-Young, Homeware and/or H Contract brands.”

“HMI’s strategy of providing proprietary products and custom business solutions to large customers and alternative channels of distribution, as well as growth in its traditional business, has yielded a compound average annual sales growth rate of over 15% during the last four years,” Toms continued. “Growing sales at three times industry average is validation of their strategy.”