Hilyer to acquire Hyland & Wood for $2.9B
Hyland, a specialty lumber company, is getting ready to acquire Woodline, a high-end woodworking and furniture company that specializes in building and repairing furniture, according to people familiar with the matter.
The acquisition will combine the companies most profitable brands, including Hilyar, the world’s largest manufacturer of industrial and woodworking equipment, and Woodline.
Woodline has been a key part of the furniture and construction industry for years, and its high-tech capabilities have been an attraction for many buyers.
The company has become a darling of luxury homebuyers and has gained a reputation for offering innovative products that can be tailored to individual needs.
It recently acquired a $2 billion stake in Chicago-based Woodcrafts, a company that produces industrial-strength plywood for furniture.
Hyland, based in California, and Hilya are in talks with a number of potential buyers, one of the people said, asking not to be identified discussing private transactions.
A representative for Woodline declined to comment.
Hylam, based near Pittsburgh, has been in talks to buy the Woodline business for several months.
Woodline’s chief executive, James F. Broussard, has not publicly announced a plan to sell the business, according a person familiar with his plans.
The people were not authorized to speak publicly about the company’s plans and spoke on condition of anonymity because they were not allowed to discuss private transactions before a deal is completed.
Hylander, which is led by founder and chief executive Robert Hilyan, has about 3,400 employees in California and Texas.
Hilyamar also employs more than 3,000 people in California.
Hyllis revenue is up more than 80% this year, to $8.4 billion, as the company has spent billions of dollars to develop new products and expand its operations.
Hyma is building a $600 million headquarters and office complex near San Diego.
It also is moving a large assembly line from Michigan to Hyland’s headquarters in Hilyam, the people and other sources said.
Hym is spending about $500 million to build the San Diego headquarters, and it is also moving some of its manufacturing operations from Michigan, the sources said, though the company was not able to share details of those moves.
Hylanders annual operating profit is $1.3 billion, compared with $1 billion for Hilyars annual revenue.
The company is expanding its operations, expanding its workforce and expanding its product line.
Hym has about 15,000 employees in five states, including in Florida, California, New York and Texas, according in a company website.
Hyman is one of Hilyarlis most profitable businesses, with revenue of more than $30 billion, according an estimate from research firm IBISWorld.
It has about 8,500 employees in 20 countries.
Its $9.9 billion in cash is about three times its annual revenue, and a significant portion of its revenue comes from financing.
Halyar also has about $12 billion in assets.
The stock rose about 9% on the Nasdaq Composite to $13.24.
Hilyar and Hyman have a long history of working together.
In 2005, the two companies merged, but the combined company did not make significant inroads in the residential and commercial real estate markets.
Hymer has a strong retail and business services division, while Hilyara provides many of the components of the business.
The two companies also have a manufacturing and distribution division.